The Chandrababu Naidu government, which promised to reduce electricity tariffs before the elections but imposed an additional burden of nearly Rs. 21,000 crore on consumers within two years, has released a two-year Power Department Progress Report filled with false claims. The report even states that electricity tariffs were not increased during this period. The reality is that the Chandrababu government between 2014–19 pushed the power sector into financial distress through expensive Power Purchase Agreements (PPAs) driven by commissions, while the 2019–24 Y.S. Jagan Mohan Reddy government implemented reforms that restored financial stability. The reforms reduced power procurement costs, resulting in Rs. 5,252.93 crore in savings, following which the Andhra Pradesh Electricity Regulatory Commission (APERC) approved a true-down benefit for consumers. Ironically, the same Chandrababu government that criticised the SECI solar agreement is now continuing to purchase SECI power at the very same tariff.
Reduced Operational Costs Under Jagan’s Reforms
The progress report claims that the previous government increased electricity tariffs nine times, burdening consumers by Rs. 32,000 crore, and purchased power from the open market at Rs. 12–15 per unit. These claims were repeated by Energy Minister Gottipati Ravi while presenting the report. The facts are different. The reforms introduced during 2019–24 significantly reduced operational costs of power utilities, resulting in a Rs. 5,252.93 crore reduction in true-up liability, eliminating the need for tariff hikes on consumers. Despite this, the present government is projecting itself as the administration that protected consumers from tariff increases.
Did the Chandrababu Government Really Avoid Tariff Hikes?
The government imposed an additional burden of Rs. 15,485.36 crore in its very first year. This included Rs. 6,072.86 crore from the end of 2024 and another Rs. 9,412.50 crore collected through bills issued from January 2025 onwards. For 2024–25, consumers paid an additional Rs. 2,787.18 crore. For 2025–26, another Rs. 0.40 per unit surcharge was imposed, adding approximately Rs. 2,787.18 crore more. Altogether, the Chandrababu government has imposed an electricity tariff burden of approximately Rs. 20,135.50 crore on the people of Andhra Pradesh.
False Claim: Previous Government Left Rs. 49,596 Crore Debt
Claim: The previous government burdened power utilities with Rs. 49,596 crore in debt.
Fact: During Chandrababu Naidu’s earlier tenure, the average annual debt growth rate of power utilities stood at 24%, whereas during the Jagan government, despite the COVID-19 pandemic, the debt growth rate was contained at just 7.3%. Distribution companies (DISCOMs) had to borrow an additional Rs. 38,836 crore mainly to service interest on loans inherited from the previous Chandrababu administration.
APGENCO Capacity Increased Under Jagan
The report claims that the Jagan government weakened APGENCO by leaving thermal stations without coal.
The facts show otherwise.
APGENCO’s installed generation capacity increased from 7,213 MW during the previous Chandrababu government to 8,789 MW under Y.S. Jagan Mohan Reddy, an increase of 1,576 MW.
Total power generation increased from 27,197 million units in 2018–19 to 34,181 million units in 2023–24.
Unlike the previous Chandrababu government, which struggled to meet a demand of 61,347 million units and frequently imposed power holidays and load shedding, the Jagan government successfully met a demand of 81,293 million units without power cuts.
Thermal power generation increased from 14,948 MW to 17,102 MW.
Coal availability improved from 93% (12.40 million metric tonnes) in 2022–23 to 96.52% (14.74 million metric tonnes) in 2023–24.
Expensive PPAs Signed During Chandrababu’s Earlier Tenure
The report falsely states that the Jagan government cancelled Power Purchase Agreements (PPAs) signed during the previous Chandrababu government.
The facts show that despite surplus power availability, the earlier Chandrababu government entered into PPAs for nearly 8,000 MW at an average tariff of around Rs. 7 per unit, forcing DISCOMs to bear an additional burden of nearly Rs. 3,500 crore every year for 25 years. Thermal generation was backed down to accommodate these expensive agreements, placing a massive long-term financial burden on the power sector.
National Recognition During Jagan Government
The report falsely claims that Andhra Pradesh DISCOMs slipped to ‘C’ and ‘D’ ratings during the previous government.
In reality, the Jagan government received the prestigious National Energy Conservation Award from the President of India, Droupadi Murmu.
APTRANSCO and NEDCAP together received three ENERTIA Awards.
APSPDCL received two National Awards.
The Government of India’s Consumer Service Rating of DISCOMs awarded all three Andhra Pradesh DISCOMs an ‘A’ Grade.
False Claims on Subsidised Power
The report claims that subsidised electricity was not provided uniformly to the aquaculture sector.
The facts show that the previous government extended free and subsidised electricity to 39.64 lakh consumers, covering agriculture, aquaculture, animal husbandry, SC, ST, BC and other weaker sections. Subsidised electricity was also provided to dhobi ghats, hair-cutting salons, handloom workers, laundries, families below the poverty line and professional goldsmiths.
Chandrababu Government Continues the Same SECI Agreement
Chief Minister’s Special Chief Secretary K. Vijayanand has confirmed that the present government is purchasing solar power from the Solar Energy Corporation of India (SECI) at Rs. 2.49 per unit, and that more than 300 MW has already been procured.
The previous Y.S. Jagan Mohan Reddy government had signed the SECI agreement to procure 7,000 MW of solar power at Rs. 2.49 per unit for 30 years to ensure nine hours of free daytime electricity for agriculture. This tariff is lower than the Rs. 2.79 per unit charged by NTPC for solar power supplied to Andhra Pradesh. The SECI project also enjoys exemption from central transmission charges.
The same agreement that Chandrababu Naidu and sections of the media had earlier criticised as expensive is now being implemented by the present government. Similarly, products such as 5-Star Rated transformers and smart meters, which were previously criticised, continue to be procured and used by the current administration.
