Srinagar, Aug 22: The Kashmir Trade Alliance (KTA) has strongly opposed the latest electricity tariff hike approved by the Jammu and Kashmir Electricity Regulatory Commission (JERC), terming it an additional burden on consumers, traders and businesses at a time when the economy of Jammu and Kashmir is already passing through a difficult phase.
KTA president Aijaz Shahdhar, in a statement issued here, said the tariff increase could further weaken economic activity and hurt businesses that are already struggling with rising operational costs, subdued demand and declining purchasing power. He said that instead of providing an impetus to the economy and extending support to the business community, the government was creating additional difficulties for people and enterprises.
“The economy of Jammu and Kashmir is already facing a downslump. At such a time, the priority of the government should be to provide an impetus to economic activity, support businesses and reduce the burden on people. Instead, increasing electricity tariffs will raise the cost of doing business and put further pressure on an economy that is already struggling,” Shahdhar said.
He said the tariff hike was particularly difficult to justify when consumers continued to face power curtailments and unreliable supply in several areas. “People were promised relief in electricity bills, including 200 units of free electricity, but instead they are now being asked to pay more. This is a contradictory approach. Consumers cannot be expected to continuously bear higher costs while the quality and reliability of supply remain a concern,” he said.
KTA president said traders, manufacturers, hotels, restaurants, workshops and other commercial establishments would be directly affected by the increase, with higher electricity bills adding to their already substantial operating expenses.
“Every increase in the cost of electricity has a cascading effect. Businesses will either have to absorb the additional cost, which will affect their viability, or pass it on to consumers through higher prices. Neither option is good for an economy that needs growth and recovery,” he said.
The KTA urged the government to reconsider the tariff hike and take up the matter with JERC in the larger public interest. It also called for urgent measures to strengthen the power sector by reducing transmission and distribution losses, improving revenue collection and ensuring reliable electricity supply.
“The government should be reducing the cost of doing business and creating an environment where trade and industry can expand. Burdening consumers and businesses with higher power tariffs at this juncture will only make economic recovery more difficult,” Shahdhar said.
The KTA said it would continue to oppose measures that impose an additional financial burden on the people and business community of Jammu and Kashmir.
