Avinav Verma
Jammu: Power consumers in Jammu and Kashmir and Ladakh may face higher electricity bills, with the Joint Electricity Regulatory Commission (JERC) considering a 5 per cent tariff hike for most consumer categories, a 50 per cent increase for several unmetered consumers, and the introduction of Time-of-Day (ToD) tariff, under which electricity charges will vary depending on the time of consumption.
Sources associated with the development told The News Now that the proposals were discussed during the meeting of the State Advisory Committee (SAC) of JERC held at the Convention Centre, Jammu, on Thursday.
The Commission is examining tariff petitions filed by Jammu and Kashmir Power Development Corporation Limited (JKPDCL), Jammu and Kashmir Power Transmission Corporation Limited (JKPTCL), Jammu Power Distribution Corporation Limited (JPDCL), Kashmir Power Distribution Corporation Limited (KPDCL), Ladakh Power Development Department (LPDD) and Jammu and Kashmir Power Corporation Limited (JKPCL).
JERC Chairman, Raj Kumar Chaudhary said the SAC meeting was an important step in the tariff determination process, where domain experts and stakeholders provide their suggestions after public hearings.
“After the filing of tariff petitions and completion of public hearings, the State Advisory Committee meeting is the final stage before tariff orders are issued. The suggestions received from members are useful for the Commission in determining tariffs,” Chaudhary said.
A key proposal under consideration is the introduction of Time-of-Day (ToD) tariff, under which electricity rates would change according to demand during different hours.
Under the proposal, high-tension consumers, bulk power users, railway traction and EV charging stations connected at 33 kV and above will have to pay a 20 per cent surcharge for electricity consumed during peak hours between 6:00 AM and 9:00 AM and again from 5:00 PM to 10:00 PM.
These consumers will get a 10 per cent rebate for electricity used during off-peak hours between 11:00 PM and 5:00 AM, while normal tariff will apply during solar hours from 9:00 AM to 5:00 PM.
For domestic consumers, commercial establishments, government departments, low-tension industries, 11 kV industrial consumers, bulk consumers and EV charging stations connected at 11 kV, a 20 per cent surcharge has been proposed during peak hours. However, no rebate has been proposed for electricity consumed during off-peak hours. Agriculture consumers have been kept outside the proposed ToD tariff system.
According to the proposals, the 5 per cent tariff increase will apply to most metered consumer categories, including domestic, commercial, industrial, government departments, public water works, public street lighting, electric vehicle charging stations and bulk consumers.
However, no tariff hike has been proposed for metered agriculture consumers.
The proposal also seeks a 50 per cent increase in tariff for several unmetered consumer categories to encourage consumers to shift towards metered electricity connections.
The power companies have justified the proposed revision, stating that there was no tariff hike last year, electricity rates in Jammu and Kashmir and Ladakh remain lower compared to many other States, and additional revenue is required to improve the financial condition of the power sector.
However, stakeholders raised concerns over improving the existing power infrastructure before increasing the burden on consumers.
Jammu Chamber of Commerce and Industry President Arun Gupta, who participated in the meeting, suggested that focus should first be laid on reducing transmission losses and resolving consumer-related issues.
Gupta said that reducing losses, completing underground cabling work, replacing faulty meters and ensuring reliable power supply should be prioritised before increasing tariffs.
Sources said another major proposal relates to the rationalisation of tariff categories. JPDCL and KPDCL have proposed reducing the number of consumer categories from 13 to 8 and sub-categories from 47 to 22 to simplify electricity billing and align the tariff structure with power sector reforms.
However, KPDCL has requested the Commission to defer implementation of the Time-of-Day tariff during FY 2026-27, stating that large-scale installation of smart meters is yet to be completed.
The utility has suggested introducing the system in a phased manner after adequate smart meter coverage is achieved across consumer categories.
The Commission is also examining Annual Performance Reviews (APR), Aggregate Revenue Requirement (ARR), Business Plans and Multi-Year Tariff (MYT) petitions for the period FY 2026-27 to FY 2028-29, besides tariff proposals for the current financial year.
During the meeting, members of the State Advisory Committee offered their suggestions on the proposed tariff framework. The recommendations will now be examined by the Commission before issuing the final electricity tariff order for FY 2026-27.
The final decision will be taken after considering consumer interests, the financial requirements of power companies and the provisions of the Electricity Act, 2003, along with applicable tariff regulations.
