APERC approves true-up charges amounting to ₹4,498 crore

The Andhra Pradesh Electricity Regulatory Commission (APERC) approved net true-up charges for retail supply business amounting to ₹4,498 crore proposed by the DISCOMs for FY 2019-20 to FY 2023-24 but directed them to claim the amounts from the government.

APERC stated in an official release that the government had undertaken to pay the true-up amounts to the DISCOMS to avoid hardship to end consumers in tune with its commitment not to burden the people with a hike in electricity charges, therefore, the DISCOMs should claim the approved true-up amounts from the government.

Andhra Pradesh DISCOMs to refund ‘true-down’ charges amounting to ₹924 crore to retail consumers 

The true-up charges proposed by the three DISCOMs amounted to ₹5,933 crore, which came down to ₹4,498 crore after an adjustment of ₹1,435 crore made in the Commission’s earlier orders.

The net true-up charges originally filed for the said period amounted to ₹12,771 crore including a carrying cost of ₹4,149 crore and other expenses related to bill discounting, bad debts and short-term operational expenditure loans aggregating ₹3,906 crore.

However, the APERC disallowed the DISCOMs from recovering the carrying cost and other expenses adding up to ₹8,274 crore from the consumers. This left a sum of ₹4,498 crore to be raised in the form of true-up charges, which the DISCOMs are mandated to claim from the government.