APERC’s on Truing-up of the Retail Supply Business for the Fourth Control Period FY 2019-20 to FY 2023-24 – EQ
Summary:
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### **1. Background**
– APERC has issued an order on the **true-up** of retail supply business for the **Fourth Control Period (FY 2019-20 to FY 2023-24)**.
– The order disposes of **OP Nos. 33, 35, and 36 of 2025** after considering public objections and suggestions.
### **2. True-Up Claims by DISCOMs**
– The three DISCOMs (SPDCL, CPDCL, EPDCL) had claimed a total **true-up amount of ₹10,057.82 crore** plus **carrying cost of ₹4,149.70 crore**, totaling **₹14,207.52 crore**.
### **3. Disallowances by APERC**
– After scrutiny, APERC **disallowed ₹8,274.07 crore** from the claims due to various corrections and limitations, including:
– Correction in true-up for FY 2019-20
– Disallowance of other expenses (bill discounting, bad debts, short-term loans)
– Limitation of transmission costs
– Adjustment of carrying costs
### **4. Final Approved True-Up**
– **Final approved true-up (without carrying cost): ₹5,933.44 crore**
– **Net true-up after adjusting earlier orders: ₹4,497.89 crore**
– The **carrying cost was fully disallowed**.
### **5. Government of Andhra Pradesh to Pay**
– The **Government of Andhra Pradesh** has committed to paying the true-up amount to DISCOMs to **avoid passing the burden to end consumers**.
– DISCOMs are directed to **claim the approved amounts from the State Government**.
### **6. Key Figures (in ₹ crore)**
| DISCOM | Claimed True-Up | Approved True-Up | Net True-Up |
|——–|—————-|——————|————-|
| SPDCL | 2,414.22 | 2,265.32 | 1,551.69 |
| CPDCL | 1,959.02 | 1,877.32 | 1,163.05 |
| EPDCL | 5,684.58 | 1,790.80 | 1,783.15 |
| **Total** | **10,057.82** | **5,933.44** | **4,497.89** |
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