Andhra Pradesh Human Resource Development Minister Nara Lokesh has sparked political debate after stating that the previous YSR Congress government left behind massive liabilities in the state’s electricity sector. He said that the burden amounts to nearly ₹4,500 crore, but made it clear that the current government will not shift this cost onto consumers.
Sharing his views in a post on X, Lokesh said that while some governments inherit progress, the present Telugu Desam Party (TDP)-led government inherited “recklessness and mismanagement.” He directly blamed the YSR government’s handling of the power sector between 2019 and 2024 for creating huge financial liabilities.
Some governments inherit progress. We inherited recklessness and mismanagement.
— Lokesh Nara (@naralokesh) January 2, 2026
₹4,500 crore. That’s the bill for electricity sector mismanagement between 2019–24. These liabilities are dumped on the people by the previous regime. We won’t pass this burden to consumers. But let… https://t.co/Tf46xhlcUY
“₹4,500 crore. That’s the bill for electricity sector mismanagement between 2019–24. These liabilities are dumped on the people by the previous regime. We won’t pass this burden to consumers. But let there be no doubt who created it,” Lokesh wrote.
Statement comes after regulatory report on power sector losses
Lokesh’s remarks come in the wake of a detailed report by CNBC TV 18, which cited findings from the Andhra Pradesh Electricity Regulatory Commission (APERC). According to the report, the state government has decided to absorb ₹4,497.89 crore in accumulated “true-up” liabilities of the power distribution sector instead of passing them on to consumers through higher electricity tariffs.
APERC issued its order on 31st December, 2025, after completing the truing-up exercise for the fourth control period, covering financial years 2019-20 to 2023-24. The process was carried out after reviewing petitions filed by the state’s three power distribution companies (DISCOMs) and considering public objections.
The commission approved a net true-up amount of ₹4,497.89 crore. Of this, the Southern Power Distribution Company (APSPDCL) accounts for ₹1,551.69 crore, the Central Power Distribution Company (APCPDCL) for ₹1,163.05 crore, and the Eastern Power Distribution Company (APEPDCL) for ₹1,783.15 crore.
Regulator disallows inflated claims by DISCOMs
The report pointed out that the DISCOMs had originally sought much higher amounts, with claims crossing ₹14,200 crore, including carrying costs. However, after scrutiny, APERC disallowed around ₹8,274 crore under various heads such as bill discounting expenses, bad debts, short-term loans, transmission cost limits, and errors in non-tariff income calculations.
The final approved amount reflects these disallowances as well as adjustments already made in earlier regulatory orders. Importantly, APERC noted that the Andhra Pradesh government, through a letter issued on 31st December, 2025, had agreed to pay the approved true-up amount directly to the DISCOMs.
The commission said this decision was taken to avoid placing an additional burden on electricity consumers. As a result, DISCOMs have been directed to recover the approved amount from the state government instead of increasing power tariffs.
While the order brings regulatory clarity to Andhra Pradesh’s power sector, it has also intensified the political war of words between the ruling TDP and the YSR Congress, with Nara Lokesh’s statement adding fuel to the ongoing blame game over governance and financial management.
