The Assam Electricity Regulatory Commission (AERC) has approved retail power tariffs for the financial year (FY) 2027, ranging from ₹3.35 (~$0.036)/kWh for low-tension (LT)-1 Jeevan Dhara category consumers to ₹13.03 (~$0.14)/kWh for LT-IX temporary supply – non-domestic non-agriculture consumers.

The Commission largely retained the same tariffs that were approved the previous year, which ranged from ₹5.34 (~$0.058)/kWh for LT-1 Jeevan Dhara to ₹13.03 (~$0.14)//kWh for LT-IX temporary supply – non-domestic non-agriculture consumers.

The Commission revised multiple assumptions, recalculated the aggregate revenue requirement (ARR), and finalized the tariffs before approving Assam Power Distribution Company’s (APDCL) petition.

Background

APDCL filed a petition before AERC in November 2025 seeking approval to truing up its FY 2025 financial performance, the annual performance review for FY 2026, and the determination of ARR and retail tariffs for FY 2027.

For its tariff calculations, the petitioner submitted an ARR of ₹112.8 billion (~$1.22 billion) and a sales projection of 13,182 MU under the ‘optimistic scenario.’ APDCL also submitted its power purchase projection, which included procurement costs from Assam Power Generation Corporation (APGCL) of ₹4.15 (~$0.045)/kWh.

The Commission subsequently asked APDCL to submit a more realistic ‘business-as-usual’ sales projection to ensure the estimates were realistic. APDCL complied by submitting 12,029 MU under this scenario.

In its petition, APDCL did not seek a tariff hike for FY 2027 and proposed continuing the FY 2026 tariff structure despite a ₹202.1 million (~$2.2 million) revenue gap. It submitted that the gap could be covered through a green tariff and green energy open access, keeping tariffs within ±20% of the projected average supply cost of ₹8.91 (0.097)/kWh.

The Commission admitted the petition after an admissibility hearing in December 2025. This would be subject to the submission of additional data and clarifications sought by AERC before admitting the petition for detailed examination.

Later that same month, APDCL filed for an extension of the deadline for publishing the tariff petition notice in the newspapers. It said it was awaiting confirmation from the Assam government regarding the continuation of the existing electricity subsidy structure.

The Commission approved this request.

The Commission, after receiving additional data and clarifications on the petition, observed inconsistencies and discrepancies. It undertook a technical validation session to clarify these issues. AERC sought and received further clarifications from APDCL regarding these issues.

The Commission received written suggestions and objections from 11 stakeholders on APDCL’s petitions.

Commission’s Analysis

The Commission undertook a prudence check of APDCL’s submissions.

It examined APDCL’s power purchase projections and found discrepancies in the estimates, particularly in the projected cost of power from APGCL. AERC noted that APDCL’s estimates understated the likely power procurement costs. The estimated were also not supported by recent trends. AERC revised the procurement costs from APGCL to ₹6.01 (~$0.065)/kWh.

The Commission evaluated APDCL’s assumptions on energy demand and sales growth after examining stakeholder objections.

Considering the sales projections under the ‘business-as-usual’ scenario, the Commission revised them to 12,649 MU.

It recalculated the ARR to ₹111.46 billion (~$1.21 billion) from ₹112.8 billion (~$1.22 billion).

After making these revisions, AERC approved retail tariffs ranging from ₹3.35 (~$0.036)/kWh to ₹13.03 (~$0.14)/kWh, the same as the previous financial year. These tariffs were similar to those approved the previous year, which ranged from ₹5.34 (~$0.058)/kWh for LT-1 Jeevan Dhara consumers to ₹13.03 (~$0.14)/kWh for LT-IX temporary supply – non-domestic, non-agriculture consumers.

Last November, AERC approved APDCL’s proposal to procure 1,000 MW of pumped hydro storage capacity for 40 years, adopting a tariff of ₹10.29 million (~$116,000)/MW/year.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.