The Andhra Pradesh Electricity Regulatory Commission (APERC) on March 23, 2026, issued the Eighth amendment to the Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of electricity) Regulation, 2005.
This shall take effect from April 01, 2026.
The following has been amended:
• The amendment proposes key changes to how fuel and power purchase cost adjustments (FPPCA) are calculated and recovered. The amendment removes the existing monthly cap of ₹0.40 per unit on FPPCA pass-through to consumers, which currently delays cost recovery and leads to large “true-up” adjustments later.
• Under the amendment, FPPCA will be computed using a specified formula that reflects actual monthly fuel and power purchase costs, allowing immediate monthly pass-through or refund of cost variations, enhancing tariff predictability and cost-reflectivity, reducing retroactive tariff shocks, and improving financial stability for distribution licensees.
• The amendment also includes detailed procedural provisions for computation, billing, reporting, and true-up/down mechanisms.
The detailed notification attached below.
[Notification no. - APERC/Secy/F.No. S-19(Vol-IV)/D.No.185]
