Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has formally objected to the Kashmir Power Development Corporation Limited’s (KPDCL) proposal to impose a 20 percent Time of Day (ToD) surcharge during peak hours, which KCCI argues would act as an indirect tariff hike, disproportionately affecting domestic, commercial, and industrial consumers.
KCCI’s Secretary General, Faiz Bakshi, voiced strong opposition during a recent hearing, emphasizing that the surcharge would significantly increase financial burdens on consumers already facing economic challenges. KCCI contends that the proposal is premature and technically unfeasible, as nearly half of Kashmir’s consumers lack smart meters necessary for accurate time-based consumption tracking. The chamber warns that without universal smart metering, the implementation of such a surcharge could lead to billing inaccuracies and disputes, as well as unfair treatment between metered and non-metered households. Furthermore, KCCI criticizes the proposal for lacking fairness, as it does not provide rebates for off-peak usage, which is a standard feature in ToD tariff systems elsewhere. The chamber also raised concerns about KPDCL’s performance, highlighting its high Aggregate Technical & Commercial losses of approximately 47 percent, significantly above the national average. KCCI argues that consumers who pay their bills should not bear the financial consequences of the utility’s inefficiencies. Additionally, the chamber pointed out the poor quality and reliability of power supply in the region, citing data indicating that Kashmir experiences some of the worst interruption indices in India, which severely impacts various sectors, including healthcare and education. KCCI noted the stagnation in local power generation capacity, with no new projects commissioned since 2015, leading to a reliance on costly power purchases. The chamber insists that consumers should not be penalized through surcharges for the utility’s planning failures. It also reminded the Joint Electricity Regulatory Commission of the unimplemented provisions of the Electricity (Rights of Consumers) Rules, 2020, which mandate automatic compensation for outages and service deficiencies. KCCI urges the Commission to prioritize consumer rights and ensure the implementation of compensation rules, reaffirming its commitment to protecting the interests of the business community and the people of Kashmir.
