After five years of the YSRCP government raising electricity charges nine times, the newly formed coalition government has provided much-needed relief to consumers within just nine months of taking power. The government has announced a significant “True Down” adjustment to various power distribution companies (DISCOMs), which could amount to nearly one thousand crore rupees through AP Transco.

While the previous YSRCP administration continuously focused on increasing electricity charges under various pretexts each year, the coalition government has taken a different approach by considering how to reduce these charges for the first time. During the fourth regulatory period between 2019-24, AP Transco declared a True Down adjustment of 105,975 crore rupees.

The Electricity Regulatory Commission has decided to allocate the True Down amount across different distribution companies: EPDCL will receive ₹38,384 crores, SPDCL ₹42,856 crores, and CPDCL ₹24,735 crores. However, the Commission must decide whether these amounts will be adjusted in consumer bills.

AP Transco proposed this adjustment to balance the actual expenditure and the amount approved by AP ERC for various development works during the regulatory period. The COVID-19 lockdowns beginning in March 2020 lasted two years, during which development works couldn’t proceed as planned due to labour shortages, resulting in unused funds.

Transco filed a petition requesting the Commission’s permission to transfer these remaining amounts to the DISCOMs under account adjustment. Meanwhile, EPDCL has prepared True Down proposals worth ₹240 crores, while CPDCL may receive up to ₹400 crores. SPDCL’s figures are still being calculated as officials continue reviewing these proposals from various DISCOMs.