Amaravati: The Andhra Pradesh government has taken steps to reduce electricity charges, reversing the trend of the past five years when consumers faced annual tariff hikes under various pretexts. AP Transco has announced a truedown—a reduction in charges—amounting to ₹1,059.75 crore for the fourth regulatory period (2019-24), providing much-needed relief to electricity consumers.
Under the previous administration, terms like TrueUp and PPCA (Fuel Price Adjustment Charges) were used to justify increased costs. In contrast, the current alliance government has worked on reducing the financial burden on consumers. The Andhra Pradesh Electricity Regulatory Commission (APERC) has allocated the truedown amount among distribution companies (DISCOMs) as follows: ₹383.84 crore for EPDCL, ₹428.56 crore for SPDCL, and ₹247.35 crore for CPDCL. However, it remains to be seen whether this adjustment will directly reflect in consumer bills, pending a final decision by the commission.
The truedown adjustment arose from unspent funds allocated for infrastructure development during the fourth control period. Due to the COVID-19 lockdowns in 2020 and 2021, many development projects were stalled, leaving surplus funds. AP Transco filed a petition seeking APERC’s approval to transfer the unused funds to DISCOMs.
DISCOMs are also conducting their own assessments. EPDCL has submitted a proposal for a ₹240 crore truedown, while CPDCL estimates adjustments of up to ₹400 crore. SPDCL’s calculations are still pending.
In simple terms, TrueUp refers to additional charges when actual costs exceed APERC’s estimated costs, while Truedown reduces charges when actual costs are lower than projected, benefiting consumers by lowering electricity bills.
