JERC Approves 6.83% Power Tariff Hike in J&K From September 1
The Joint Electricity Regulatory Commission (JERC) for Jammu and Kashmir and Ladakh has approved an average 6.83% increase in power tariffs for Jammu and Kashmir for the financial year 2026-27.
The revised tariff will come into effect from September 1, 2026. Electricity bills for consumption recorded from that date will be calculated according to the new rates.
JPDCL and KPDCL Seek Tariff Increase
According to an order issued by the JERC, the Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL) had sought a tariff increase to help bridge their revenue gap.
The two power distribution companies had proposed a 5% across-the-board increase in electricity tariffs.
However, after examining the financial requirements of the distribution companies, the Commission approved an average increase of 6.83%.
J&K Power Revenue Gap Stands at Rs 2,922.85 Crore
The Commission said the total Annual Revenue Requirement (ARR) of JPDCL and KPDCL, after its prudence check, stood at Rs 10,275.72 crore.
At the existing tariff, the two distribution companies were expected to generate revenue of only Rs 7,352.87 crore.
This left a revenue gap of Rs 2,922.85 crore.
The JERC said that recovering the entire shortfall through electricity tariffs alone would have required an increase of around 40%.
Such an increase, the Commission said, would have resulted in a “tariff shock” for consumers.
Government Subsidy to Cover Remaining Gap
To limit the impact on electricity consumers, the Commission has taken into account Rs 2,420.78 crore in financial support committed by the Jammu and Kashmir Government as subsidy under Section 65 of the Electricity Act, 2003.
Following the revised tariff, revenue from electricity consumers is expected to rise to Rs 7,854.94 crore.
The remaining gap of Rs 2,420.78 crore will be covered through government grant-in-aid.
New Power Tariff From September
The revised rates will apply to electricity consumption from September 1, 2026.
The JERC said the tariff decision was aimed at balancing the financial requirements of JPDCL and KPDCL while avoiding a sharp increase in the cost of electricity for consumers.
The 6.83% average increase therefore represents a compromise between the distribution companies’ revenue requirements and the need to protect consumers from a much larger tariff increase.
