Mon Aug 25 19:43:57 UTC 2025: Okay, here’s a summary of the text and a news article based on it:

**Summary:**

Andhra Pradesh Chief Minister Chandrababu Naidu, touting his past success in power sector reform, is facing challenges in keeping electricity tariffs down. While he promised no rate hikes, industrialists report rising costs and Left parties claim significant increases. The state’s distribution companies (DISCOMs) are heavily in debt, making tariff cuts difficult. Past decisions, like the previous government’s controversial solar power deals and increased electricity duty, have further complicated the situation. Experts believe increasing generation costs will inevitably lead to further tariff revisions, impacting all consumers, especially energy-intensive industries. While Naidu aims to improve efficiency without raising rates, analysts suggest this approach may be politically beneficial but economically unsustainable.

**News Article:**

**Andhra Pradesh CM Naidu’s Power Promises Face Reality as Electricity Costs Surge**

**Amaravati, August 26, 2025** – Andhra Pradesh Chief Minister N. Chandrababu Naidu is facing a tough balancing act in the state’s power sector, with promises of stable electricity tariffs clashing against rising costs and mounting debts within distribution companies (DISCOMs).

Naidu, who returned to power in 2024 after a dramatic election victory, has repeatedly invoked his legacy of power sector reform from 25 years ago. He has assured consumers that tariffs would not be increased but industrialists are raising concerns about high costs, with rates reaching ₹12 per unit. Left parties also argue that tariffs have risen sharply.

The core of the problem lies in the financial distress of the state’s DISCOMs, which are burdened with significant debt. These debts make it challenging to cover the gap between the cost of supplying subsidized electricity and limited government reimbursements.

“The Chief Minister assured us that tariffs would not increase, and even suggested he would aim to bring them down by ₹0.50 per unit each year for the next four years,” said one industrialist, who wished to remain anonymous. “But the current situation makes that seem unlikely.”

Adding to the complexity, decisions made by the previous YSR Congress Party (YSRCP) government, particularly a review of long-term solar power purchase agreements, resulted in court-ordered penalties of nearly ₹9,000 crore for the state. The rise in electricity duty, implemented earlier this year, has further burdened energy-intensive industries, who unsuccessfully challenged this increase in court.

Critics also point to the introduction of “true-up charges” under Naidu’s earlier tenure, which allow DISCOMs to recover additional costs retroactively.

While Naidu has blamed past tariff hikes on the previous administration, experts warn that rising power generation and purchase costs will make further tariff revisions unavoidable. The Andhra Pradesh Electricity Regulatory Commission, tasked with balancing consumer costs and DISCOM viability, will face increasing pressure to approve rate increases.

“No one should be under the illusion that electricity bills will become less expensive,” said one energy sector analyst. “They are only bound to increase in line with rising costs.”

Naidu has stated his intention to revive the power sector through increased efficiencies, not tariff hikes. However, experts suggest that while this approach might be politically expedient in the short term, it is not economically sustainable. The long-term financial health of the DISCOMs, they argue, requires a more realistic approach to cost recovery.

The situation in Andhra Pradesh reflects a broader challenge faced by many states, highlighting the difficulty of providing affordable and reliable power while managing the financial realities of the energy sector.

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