Assam: APDCL proposes no tariff hike for FY 2026-27, despite revenue gap

Staff Reporter

Guwahati: The Assam Power Distribution Company Limited (APDCL) has proposed to the Assam Electricity Regulatory Commission (AERC) that no increase in electricity tariffs should be effected for FY 2026–27, even as it projected a cumulative revenue gap of Rs 20.21 crore under the existing tariff structure.

In its tariff petition, APDCL stated that the cumulative revenue requirement for FY 2026–27 stands at Rs 11,747 crore, excluding the revenue gap and carrying cost arising from the Annual Performance Review (APR) of FY 2025–26. Against this, the projected revenue at existing tariffs is Rs 11,726.60 crore, resulting in a marginal gap of Rs 20.21 crore.

According to its petition, APDCL has projected electricity sales of 13,182 million units (MU) during FY 2026–27. Based on this, the Average Cost of Supply (ACoS) works out to Rs 8.91 per unit, reflecting an increase of about 2.19% compared to the prevailing cost of Rs 8.72 per unit in FY 2025–26 (excluding subsidy and fuel cost adjustments).

The power utility pointed out that recovery of the Rs 20.21-crore gap would require only a nominal increase of about 1.53 paise per unit, but it has chosen not to pass this burden on to the consumers.

The cumulative revenue gap till FY 2026–27 includes: True-up gap for FY 2024–25 of Rs 377.27 crore, carrying cost on the gap to the tune of Rs 89.76 crore and a total true-up gap of Rs 467.03 crore.

Additionally, the APR for FY 2025–26 indicates a gross revenue gap of Rs 177.74 crore, including carrying costs.

The APDCL further pointed out that the power purchase cost remains the largest contributor to the cost of supply, accounting for over 92% of ACoS at Rs 7.95 per unit. Operation and maintenance (O&M) expenses contribute about Rs 1.08 per unit, while employee costs form the biggest share within O&M.

APDCL has proposed to continue the existing tariff structure approved by the AERC on March 25, 2025, without any hike across all LT and HT consumer categories for FY 2026–27.

The utility also proposed continuation of the existing Time of Day (ToD) tariff structure, which includes a 20% rebate on energy charges during solar hours (9:00 am to 5:00 pm) and a 20% surcharge during peak hours (5:00 pm to 10:00 pm).

APDCL, however, acknowledged a revenue loss of Rs 163.21 crore due to the continuation of the existing ToD structure and has requested the Commission to allow recovery of this amount under the Aggregate Revenue Requirement (ARR).

While the Assam government currently provides targeted subsidies to certain domestic consumers, APDCL has assumed full-cost tariffs for FY 2026–27 due to the absence of a formal subsidy commitment. Any subsidy granted later under Section 65 of the Electricity Act, 2003, will be adjusted category-wise with the Commission’s approval.

The utility also indicated that new policy initiatives such as green tariffs and green energy open access could provide additional revenue streams, which may help absorb the revenue gap during the remaining Multi-Year Tariff (MYT) control period.

APDCL stated that its tariff proposal aligns with the Electricity Act, 2003, the National Electricity Policy, the National Tariff Policy, and the MYT Regulations, 2024, ensuring that tariffs across consumer categories remain within ±20% of the ACoS.

In summary, despite rising costs and accumulated revenue gaps, APDCL has opted for tariff stability in FY 2026–27, prioritizing consumer relief while banking on policy support and efficiency measures to bridge financial shortfalls.

Meanwhile, the AERC has issued an order asking the APDCL to upload the petition to the power utility’s website. The Commission also asked APDCL to provide time until January 19, 2026, for stakeholders to submit their comments. Moreover, the APDCL was directed by the Commission to submit its replies to all comments by January 28.

Also Read: Assam: APDCL buys power worth Rs 19 crore daily to meet the demand