Vijayawada / Kurnool: In a landmark decision, the Andhra Pradesh Electricity Regulatory Commission (APERC) has directed Discoms to refund ₹923.55 crore to retail electricity consumers for the fiscal year 2024–25, following its approval of a “true-down” adjustment in the Fuel & Power Purchase Cost Adjustment (FPPCA) account.
What the Order Says
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APERC approved a net FPPCA “true-up” of ₹1,863.64 crore, having accepted Discoms’ cost claims after reducing them from the ₹2,758.76 crore initially filed.
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Discoms had already collected ₹2,787 crore via FPPCA charges at ₹0.40 per unit. After adjusting this, APERC calculated that ₹923.55 crore is to be refunded.
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The Commission mandated that this refund must be passed to consumers over 12 monthly instalments from November 2025 to October 2026.
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The per-unit rebate (negative FPPCA) is fixed as:
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APSPDCL: – ₹0.1328 / unit
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APCPDCL: – ₹0.1343 / unit
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APEPDCL: – ₹0.1312 / unit
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This is the first time since 1999 that APERC has ordered Discoms to refund rather than levy additional costs under the FPPCA framework.
Click here for the APSERC order
What It Means for Consumers
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From November 2025 onward, electricity bills will begin reflecting the refund in the form of lower charge entries under the FPPCA heading.
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The effective reduction works out to about 13 paise per unit for consumption in the April 2024 – March 2025 period.
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In addition, the order signals a shift in regulatory approach: instead of burdening consumers with hindsight cost overruns, regulators are now insisting on more accountability and adjustments favoring consumers.
Challenges & Critiques
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Some critics note that spreading the refund over 12 months dilutes its impact, especially for low-income households whose electricity use is already tight.
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Since the refund applies only to the FPPCA (fuel and power purchase variances) component, it does not touch base tariff, transmission, or distribution charges. Thus, consumer bills might still remain high if those elements increase.
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There is a possible risk of future cost overruns being passed back via FPPCA again, unless stricter cost discipline and regulatory oversight are enforced.
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Implementation logistics—ensuring the revised refund entries are correctly computed and applied in the billing systems of all Discoms—pose an operational challenge.
Broader Context & Aftermath
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The order comes at a sensitive time, when Discoms had earlier petitioned APERC to allow ₹12,771 crore in “true-up” recoveries from consumers, in addition to existing levies.
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The corrective reduction of claims by nearly ₹895.12 crore underscores APERC’s sharper scrutiny of Discom cost submissions.
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Meanwhile, a separate report indicates that from November 2025, electricity bills may decline by ~13 paise per unit due to this order.
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Consumer groups and public interest advocates are likely to monitor billing cycles closely, ensuring the refunds are passed accurately and transparently.