Srinagar, Sep 25: In a startling revelation, the Jammu and Kashmir government on Friday said the outstanding power dues of domestic, commercial consumers and government departments in the Union Territory have crossed Rs 8,583 crore.
The government further stated that the recently revised power tariff is expected to generate only Rs 251 crore in additional revenue during 2026-27. The total outstanding comprises Rs 4,385.41 crore owed by domestic consumers, Rs 1,727.51 crore by commercial consumers and Rs 2,470.13 crore by UT and Central Government departments.
The figures assume significance as the government has defended the recent tariff revision as a necessary measure to bridge the gap between the average revenue realised per unit and the cost of power supply.
According to the government, the tariff was revised by the Joint Electricity Regulatory Commission (JERC) after considering the Annual Revenue Requirement (ARR) and other factors concerning the DISCOMs.
The tariff revision is expected to yield an additional Rs 251 crore to the DISCOMs in the current financial year.
Despite the revision, the government said it would continue to bear more than Rs 4,500 crore as power subsidy to bridge the revenue deficit of the DISCOMs, excluding their revenue expenses.
The government also clarified that the subsidised tariff for AAY and BPL consumers has not been increased under the tariff order for 2026-27.
On the possibility of another Power Amnesty or One-Time Settlement scheme for clearing outstanding dues, particularly for economically weaker sections, the government said the matter is under examination by the department on merits.
The massive outstanding dues, alongside the limited additional revenue expected from the tariff revision, underline the continuing financial pressure on J&K’s power distribution system.
