KPDCL proposes 20% surcharge on electricity consumption during peak hours, submits proposal to JERC
Srinagar, Nov 20: Close on the heels of a massive controversy in Kashmir over the installation of smart meters, the Power Development Department (PDD) has proposed an extra 20 percent charge on electricity consumption during morning and evening hours in the Valley.
The Kashmir Power Development Corporation Limited (KPDCL) according to the news agency—Kashmir News Observer (KNO) has sought approval from Joint Electricity Regulatory Commission (JERC) to impose a 20 percent surcharge on all categories of consumers except for the agriculture sector during peak hours, when demand is at its highest due to the bone‑chilling cold in the Valley.
According to a petition filed before the JERC for J&K and Ladakh, KPDCL has proposed the surcharge for different consumer categories, including domestic households. The JERC, a quasi‑judicial body, is empowered to approve or reject tariff proposals.
Confirming the development, Managing Director KPDCL, Mahmood Ahmad Shah told KNO that “KPDCL has proposed a 20 percent surcharge on tariff for the peak hours of the day. As of now, no decision has been taken by the regulatory commission.”
The proposal is part of the Time of Day (ToD) tariff system, under which electricity costs vary depending on the time of consumption.
However, the proposal has been vehemently opposed by the Kashmir Chamber of Commerce and Industry (KCCI) during the hearing on KPDCL petition on Thursday.
The KCCI, represented by Secretary General Faiz Ahmad Bakshi argued that it was misleading for KPDCL to claim it had not raised tariffs while simultaneously proposing a surcharge during peak hours.
“Since electricity consumption during these hours is a necessity and not a discretionary choice, treating it as an additional charge is fundamentally unfair,” the KCCI said.
Citing figures, the KCCI said Kashmir has the worst power reliability in India.
“As per Central Electricity Authority figures for 2022, the System Average Interruption Duration Index(SAIDI) for Kashmir stands at a shocking 889, while the System Average Interruption Frequency Index(SAIFI) stands at 723.95. These numbers are several times higher than the national averages of 116.12 and 171.64. Even Jammu, despite its own problems, performs significantly better with a SAIDI of 489 and SAIFI of 442,” the business body said. (KNO)
