NAVVNEET DUBEY
JAMMU: Consumers in Jammu and Kashmir are expected to bear an additional financial burden of Rs 251 crore following 6.83 percent revision in electricity tariffs, the government informed the Legislative Assembly on Tuesday. The tariff revision, notified by Joint Electricity Regulatory Commission, is projected to generate additional Rs 251 crore revenue for power distribution companies during 2026-27, Power Development Department said in written reply to question by MLA Sajad Gani Lone.
Government said revision was required to address the gap between cost of supplying electricity and revenue collected by DISCOMs, as well as to meet their Annual Revenue Requirement. Despite the increase, the government said it would provide more than Rs 4,500 crore in subsidy towards DISCOMs’ power purchase costs. The department informed the House that Rs 4,385.30 crore in power tariff dues are outstanding against J&K and Central Government departments. A power tariff hike came into effect in Jammu and Kashmir on September 1.
In an X post, Lone said, “The National Conference-led government may not have provided 200 units of free electricity to consumers, but it has admitted today, in response to my question, that Rs 251 crore will be collected from consumers on account of the recent power tariff. It has also admitted that 11 lakh smart meters have been installed during its rule starting from October 2024.”
Revenue collected from domestic consumers in Kashmir Valley rose to Rs 1,455.90 crore in 2025-26 from Rs 1,238.07 crore in 2024-25, according to the government.
During the current financial year, domestic consumers contributed Rs 547.79 crore in revenue upto August. Metered consumers accounted for Rs 383.08 crore, while Rs 164.71 crore was collected from flat-rate consumers, it said.
Government also said a scheme offering 200 units of free electricity to eligible Antyodaya Anna Yojana households is being implemented through RESCO-based rooftop solar model under PM Surya Ghar: Muft Bijli Yojana. Tendering process for the scheme is currently under evaluation. Eligible households will begin receiving benefits once rooftop solar systems are commissioned.
The revision has come at a time when domestic consumption and collection have shown steady rise in the Valley, with metered segment contributing a major share of revenue. Government maintained hike was unavoidable to bridge cost-revenue gap and ensure financial viability of DISCOMs, while continuing to shield consumers through substantial subsidy support.
Outstanding dues from government departments remain a major concern, with over Rs 4,385 crore pending, impacting DISCOM finances. Implementation of a free power scheme for AAY families through the solar route is expected to reduce subsidy burden in the long term while providing relief to the poorest households, the department said. The reply indicates tariff rationalization will continue to balance consumer interest and DISCOM sustainability, with a subsidy of over Rs 4,500 crore retained for 2026-27 to offset power purchase costs.
