The Andhra Pradesh Electricity Regulatory Commission (APERC) on February 18, 2026, issued the Draft 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.
The following has been stated:
• The amendment proposes key changes to how fuel and power purchase cost adjustments (FPPCA) are calculated and recovered. The draft 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, and is proposed to come into effect from 1 April 2026.
• The comments, suggestions, and objections on the Draft Eighth Amendment, if any, may be sent by email to [email protected] or by post to the Commission’s office at Kurnool, to reach the undersigned on or before March 04, 2026.
