Rs 500 crore extra burden on consumers
Srinagar, Aug 22: Consumers in Jammu and Kashmir will have to pay more for electricity consumption as the power regulator for J&K has approved a 6.83% average hike in tariff across the Union Territory.
In an order, a copy of which is in possession of the news agency—Kashmir News Observer (KNO), the Joint Electricity Regulatory Commission (JERC) approved a 6.83% average increase in power tariff-1.83% higher than what was proposed by the power distribution utilities.
In their separate petitions, the Kashmir Power Distribution Corporation Limited (KPDCL) and the Jammu Power Distribution Corporation Limited (JPDCL) had sought a 5% hike in electricity tariff.
The JERC justified the increase on the grounds that there was still a revenue gap of Rs 502 crore even after Rs 2420.78 crore in financial support committed by the J&K Government as subsidy under Section 65 of the Electricity Act, 2003.
According to the order, the revised tariff will raise revenue to Rs 7854.94 crore, up from Rs 7352.87 crore at the existing rates, while the remaining unmet gap of Rs 2420.78 crore will be covered through government grant-in-aid.
The Commission noted that the government’s financial support helped avert a tariff shock to consumers. “If this entire gap was to be met through tariff alone, the hike would have been around 40%, which would have resulted in a tariff shock to consumers,” the order stated.
As per JERC order, the new rates would be applicable to all consumers from September 01, 2026.
“The tariff and terms and conditions approved shall continue to apply until issuance of the next Tariff Order or until further orders of the Commission, unless amended, modified or extended earlier by an Order of the Commission,” the order stated.
The JERC further directed KPDCL and JPDCL to take immediate steps for implementation of the tariff order. (KNO)
