AP Electricity Tariff to Drop: Naidu Promises Further Reductions, Government to Absorb True-Up Charges

• CM Chandrababu Naidu announced a reduction in electricity purchase price from Rs. 5.19 to Rs. 4.90 per unit, with a further 10 paise reduction by March.
• The government aims to provide electricity at Rs. 4 per unit within three years, a total reduction of Rs. 1.19.
• The state cabinet approved bearing the entire Rs. 4,498 crore true-up charges from 2019-2024, preventing the burden from falling on consumers.
• This 'true-down' mechanism is a first in India, expected to reduce charges by 13 to 29 paise per unit on average.
• Reductions are driven by increased renewable energy, improved generation capacity, and reduced transmission losses, boosting the state's economy.

Why It Matters: Andhra Pradesh government reduces electricity tariffs, absorbs true-up charges, and aims for further price drops.