Andhra Issues Tariff Order for FY 2023, Introduces A Separate Grid Support Charge

Andhra Pradesh Electricity Regulatory Commission (APERC) has announced tariffs for commercial and industrial consumers for the financial year (FY) 2022-23.

The state regulatory body for individual states issues a yearly tariff order for all consumers setting a standardized tariff for power consumption in the state.

According to the new order, the tariffs remained unchanged from the previous year for commercial consumers in Andhra Pradesh connected at 11 kV to 132 kV power lines. However, the tariff for consumers connected to a 220 kV line has decreased by 0.75% from ₹6.70 (~$0.088)/kWh to ₹6.65 (~$0.086)/kWh.

For industrial consumers connected through 11 kV lines, the tariff is increased to ₹7 (~$0.092)/kWh from ₹6.30 (~$0.083)/kWh, up 11.11%.


For consumers connected to 33 kV lines, the tariff has increased by 19.7% to ₹7 (~$0.092)/kWh from ₹5.85 (~$0.077)/kWh.

For consumers connected at 132 kV and 200 kV lines, the tariffs have been raised to ₹7 (~$0.092)/kWh from ₹5.40 (~$0.071)/kWh, a hike of 29.6%.

Andhra Pradesh - Electricity Tariff for Commercial and Industrial Consumers

The state also issued wheeling charges, transmission charges, and cross subsidy surcharge for FY 2022-23. However, the state is yet to release the additional surcharge for FY 2022-23.

Andhra Pradesh Southern Power Distribution Corporation

The wheeling and distribution charges for commercial and industrial open access consumers connected to 11 kV lines under Andhra Pradesh Southern Power Distribution Corporation Limited (APSPDCL) are ₹0.71 (~$0.0094)/kWh and ₹0.11 (~$0.0014)/kWh, respectively.

For commercial and industrial open access consumers connected to 33 kV lines under APSPDCL, the wheeling and distribution charges are ₹0.10 (~$0.0014)/kWh and ₹0.11 (~$0.0013)//kWh, respectively.

Commercial open access consumers connected to 11 kV, 33 kV, and 132 kV lines under APSPDCL must pay a cross subsidy surcharge of ₹2.19 (~0.029)/kWh, ₹2.60 (~$0.034)/kWh, and ₹1.84 (~0.024)/kWh, respectively.

Industrial open access consumers connected to 11 kV, 33 kV, 132 kV, and 220 kV lines under APSPDCL must pay a cross subsidy surcharge of ₹1.76 (~$0.023)/kWh, ₹1.51 (~$0.020)/kWh, ₹1.37 (~$0.018)/kWh, and ₹1.42 (~$0.019)/kWh, respectively.

Andhra Pradesh Eastern Power Distribution Company

The wheeling and distribution charges for commercial and industrial open access consumers connected to 11 kV lines under Andhra Pradesh Eastern Power Distribution Company (APEPDCL) are ₹0.65 (~$0.0085) /kWh and ₹0.11 (~$0.0014) /kWh.

The wheeling and distribution charges for commercial and industrial open access consumers connected to 33 kV lines under APEPDCL are ₹0.08 (~$0.0010) /kWh and ₹0.11 (~$0.0014) /kWh.

Commercial open access consumers connected to 11 kV, 33 kV, and 132 kV lines under APEPDCL must pay cross subsidy surcharge of ₹2.27 (~$0.03) /kWh, ₹2.04 (~$0.026) /kWh, ₹2.50 (~$0.032) /kWh, and ₹1.59 (~$0.021) /kWh.

Industrial open access consumers connected to 11 kV, 33 kV, 132 kV, and 220 kV lines under APEPDCL must pay a cross subsidy surcharge of ₹1.71 (~$0.022) /kWh, ₹1.50 (~$0.019) /kWh, ₹1.41 (~$0.018) /kWh, and ₹1.68 (~$0.022)/kWh.

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Andhra Pradesh - Open Access Charges and Costs

Green power tariff

A green power tariff is applicable to consumers who wish to voluntarily avail power from non-conventional sources of energy. The consumers can pay energy charges of ₹12.25 (~$0.16)/kWh and be entitled to Renewable Energy Certificates (RECs).

Grid support charges

The DISCOMs have not provided any substantiation to justify imposing 50% of the demand charges applicable to high tension consumers as grid support charges. Hence, the Commission is inclined to fix the grid support charges for parallel operations based on the data, materials, and scientific inputs relating to parallel operations every month. Parallel operation of the generators will affect the grid equipment, which will affect the repair and maintenance cost of the Andhra Pradesh Transmission Company and the DISCOMs.

Conventional generators must pay ₹50 (~$0.65)/kW as grid support charges, while renewable energy projects, including waste heat recovery projects, projects based on municipal solid waste, and the co-generation projects, must pay ₹25 (~$0.33)/kW as grid support charges. Rooftop solar projects under net metering or gross metering policy should pay ₹15 (~$0.20)/kW. Co-generation sugar mills have to pay charges of ₹25 (~$0.33)/kW per month for four months or the actual operation period, whichever is higher.

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