Sun Aug 31 15:38:45 UTC 2025: **Summary:**

Nearly 7.3 million consumers of Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) in Visakhapatnam are facing unusually high electricity bills due to the inclusion of Fuel and Power Purchase Cost Adjustment (FPPCA) charges. These charges, which began in 2008, are levied to recover excess costs of power procurement incurred by the DISCOMs, as approved by the A.P. Electricity Regulatory Commission (APERC). APEPDCL has already collected significant amounts in true-up charges from consumers in the past and is currently collecting FPPCA charges for the years 2022-2025. The DISCOM official stated that they are following APERC guidelines to recover the charges from power consumers.

**News Article:**

**Visakhapatnam Residents Hit with Surging Electricity Bills Due to FPPCA Charges**

Visakhapatnam, August 31, 2025 – Millions of residents served by the Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) are experiencing sticker shock as unusually high electricity bills flood households across the region. The culprit? Fuel and Power Purchase Cost Adjustment (FPPCA) charges, which consumers allege are being used to recoup past expenditures and losses by the power company.

Approximately 7.3 million APEPDCL consumers are affected by the additional charges, which appear as line items on their monthly bills. One sample bill showed charges like ₹169.46 under FPPCA1, ₹83 under FPPCA2, and ₹0.45 under FPPCA3 added to the overall amount due.

“We are struggling to understand why our bills have suddenly increased so drastically,” said one concerned resident, reflecting the sentiment of many APEPDCL customers.

APEPDCL officials have defended the charges, stating that the collection of FPPCA began in 2008 and is mandated by the A.P. Electricity Regulatory Commission (APERC) and the State Government. These charges are intended to cover the difference between estimated and actual power procurement costs. DISCOMs (Distribution Companies) submit annual expenditure reports to APERC, and if actual costs exceed estimates, they request recovery of the excess from consumers through FPPCA or via government subsidies.

According to an APEPDCL official, the company collected around ₹696 crore in true-up charges for 2014-19 in the Visakhapatnam circle alone. Currently, they are collecting FPPCA charges for the periods of 2022-23, 2023-24, and 2024-25 in installments spanning several months. “So far, we have collected around ₹500 crore through FPPCA 1, 2 and 3, and another ₹500 crore is to be collected from 10.15 lakh electricity connections in the Visakhapatnam circle,” said a senior APEPDCL official.

The official added that the updated guidelines allow for the recovery of these costs based on the previous month’s electricity consumption, a change that is intended to be more consumer-friendly.

While APERC permits automatic monthly adjustments to account for market fluctuations in fuel and power procurement costs, the added burden on consumers during a time of economic uncertainty is generating widespread discontent.

Read More