JERC Approves Tariff Increase to Bridge Deficit Despite Rs 2,420 Cr Subsidy
Srinagar: Electricity consumers in Jammu and Kashmir face higher power bills as the Joint Electricity Regulatory Commission (JERC) approved a 6.83% average tariff increase across the Union Territory, effective September 1, 2026. The approved hike exceeds the 5% increase initially proposed by distribution utilities Kashmir Power Distribution Corporation Limited (KPDCL) and Jammu Power Distribution Corporation Limited (JPDCL).
The JERC cited an unmet revenue gap of Rs 502 crore as justification for the decision. While the revised rates will raise revenue from Rs 7,352.87 crore to Rs 7,854.94 crore, a broader gap of Rs 2,420.78 crore will be covered via government grant-in-aid under Section 65 of the Electricity Act, 2003. According to the regulator, this state financial support averted a potential 40% tariff hike that would have otherwise caused a severe “tariff shock” to consumers.
Leader of Opposition (LoP) in the J&K Legislative Assembly Sunil Sharma called the decision a betrayal, noting that the ruling party pledged 200 units of free electricity per household prior to taking office. Peoples Conference (PC) President Sajad Gani Lone echoed the sentiment on X, stating that the hike is a shock for consumers who have seen zero relief under the free-power promise while facing increased load assessments in non-metered areas.
Peoples Democratic Party (PDP) MLA Waheed Ur Rehman Parra and Apni Party president Altaf Bukhari said that higher electricity bills exacerbate economic pressures amid elevated unemployment and inflation. Additionally, trade organizations including the Kashmir Trade Alliance (KTA) warned that the revised rates will drive up operational costs and hamper business growth throughout the region.
