In a major step to tackle rising costs and corruption in power distribution, Andhra Pradesh Electricity Regulatory Commission (APERC) in-charge chairman P. Venkata Rama Reddy said the regulator will issue strict guidelines within three months. These new rules will control how DISCOMs buy equipment, aiming to clean up procurement processes. Speaking at a public hearing on January 22, 2026, in Vijayawada about the DISCOMs’ Annual Revenue Requirement for 2026-27, Mr. Rama Reddy responded to concerns raised by A.B. Venkateswara Rao, Centre for Liberty chairman. Rao criticized SPDCL’s transformer purchases since 2022, calling them corrupt and costly, with expenses passed to consumers as true-up charges. Mr. Rama Reddy said he had already issued a detailed cost order in February 2025 after studying data from Karnataka, Telangana, and Tamil Nadu. He stressed the need for thorough study before approving higher prices. He promised to investigate the corruption claims brought to his attention and highlighted that material procurement forms a large part of DISCOM costs. He noted that APERC had not previously focused much on procurement but now intends to carry out necessary inquiries as unfair practices cannot continue. The chairman appreciated the government’s decision to absorb ₹4,478 crore of approved true-up charges in December, preventing cost burdens on consumers. Mr. Rao urged APERC to reject the costs claimed by DISCOMs in the new ARR filings. He also objected to installing costly Star-5 transformers in the farming sector and pointed out that over 90% of transformers were bought from Shirdi Sai Electricals Limited and the rest from Toshiba Transmission & Distribution. This, he said, blocked competition from local companies that could reduce expenses. Rao called on APERC to use its full authority to act on these unfair procurement practices. The developments mark a potential turning point towards more transparent and accountable power distribution in Andhra Pradesh.