The Communist Party of India (Marxist) alleges that the Andhra Pradesh government has imposed an additional burden of ₹21,885 crore on power consumers over the past two years. The promised reduction of only 13 paise per unit from 2026 is portrayed as a misleading relief gesture.

Key Takeaways

  • CPI(M) reveals a hidden burden of ₹21,885 crore on consumers
  • Government pledges a modest 13‑paise/unit cut from Jan 2026
  • CPI(M) demands abolition of adjustment charges and rollback of smart meters

The power tariff controversy in Andhra Pradesh has resurfaced after CPI(M) accused the state government of saddling electricity consumers with an additional ₹21,885 crore over the last two years. Party State Secretariat member Ch. Babu Rao highlighted that while the government claimed a reduction of 52 paise per unit, adjustment charges ranging from 62 paise to ₹1.88 per unit persisted month after month.

Background

In 2024, the Andhra Pradesh administration released a two‑year sector report touting tariff cuts, a move timed just before state elections. Opposition parties, however, questioned the authenticity of the data, pointing to concealed adjustment fees and the ongoing rollout of smart meters. CPI(M) insists that the report glossed over critical cost components, presenting a skewed picture of relief.

Financial Impact

According to Babu Rao, consumers paid ₹6,072 crore in true‑up charges for 2022‑23, ₹9,412 crore for 2023‑24, and ₹1,400 crore for the 2014‑19 period. An extra levy of 40 paise per unit added roughly ₹5,000 crore, bringing the total hidden burden to ₹21,885 crore. The party also noted a delayed subsidy of ₹13,054 crore to distribution companies, despite the government's claim of absorbing ₹20,000 crore in sector costs.

Political Reaction

CPI(M) labeled the government’s narrative “deceptive” and called for a public debate. It criticized the continuation of smart‑meter installations, a policy the party opposed before the elections. Moreover, the party raised concerns over the Adani‑SECI solar agreement, alleging that no inquiry was launched despite serious corruption allegations.

Future Outlook

The party’s demands are clear: abolish adjustment charges, cut tariffs by 52 paise per unit, halt the smart‑meter program, and dismantle meters already installed. CPI(M) pledged to sustain statewide protests against electricity charges and smart‑meter imposition. If the government does not address these grievances, the financial strain on households could deepen, intensifying political friction ahead of the next electoral cycle.

In essence, the dispute over Andhra Pradesh’s power policy transcends fiscal calculations; it reflects broader issues of transparency, accountability, and the political cost of energy reforms.