J&K Electricity Tariff Hiked 6.83% From September 1

JERC approves higher-than-sought increase, citing โ‚น502 crore revenue gap; revised rates expected to raise โ‚น7,854.94 crore

News Desk
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Srinagar, August 23: Electricity consumers across Jammu and Kashmir will pay higher power bills from September 1 after the Joint Electricity Regulatory Commission (JERC) approved an average 6.83% hike in electricity tariff for the region.

The increase is 1.83 percentage points higher than the 5% hike sought by the two power distribution companies, Kashmir Power Distribution Corporation Limited (KPDCL) and Jammu Power Distribution Corporation Limited (JPDCL), in their separate petitions.

The revised tariff is expected to increase power-sector revenue from โ‚น7,352.87 crore to โ‚น7,854.94 crore, according to the JERC order.

The Commission said the increase was necessary to address a continuing revenue gap despite financial support from the Jammu and Kashmir government.

The JERC said a โ‚น2,420.78 crore subsidy committed by the government under Section 65 of the Electricity Act, 2003, had helped reduce the burden on consumers, but a revenue gap of around โ‚น502 crore still remained.

The Commission said the government support had prevented a much steeper increase in electricity rates.

โ€œIf 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,โ€ the order stated.

The new tariff and associated terms and conditions will come into effect from September 1, 2026, and will remain applicable until the next tariff order or further directions from the Commission.

The JERC has also directed KPDCL and JPDCL to take immediate steps to implement the revised tariff.

The Commission said the approved rates could be amended, modified or extended through a subsequent order, if required.

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