Srinagar, Aug 22: Jammu and Kashmir electricity consumers are set to face higher power bills from September 1, 2026, with the Joint Electricity Regulatory Commission (JERC) approving a 6.83 per cent hike in tariffs across consumer categories.
The increase comes at a time when households are already grappling with rising living costs, adding to the financial burden on consumers across the Union Territory.
The decision comes despite repeated assurances from the government that consumers would not face a general tariff hike. Chief Minister Omar Abdullah had in January stated that there would be no general increase in electricity tariffs during 2025–26.
The latest JERC order, accessed by Rising Kashmir, however, provides for revised tariffs for consumers of Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL), effective from 1 September 2026 through 31 March 2027.
The Commission approved a net Annual Revenue Requirement (ARR) of Rs 10,275.72 crore for the two distribution companies. At the existing tariff, their estimated revenue was Rs 7,352.87 crore, leaving a gap of Rs 2,922.85 crore.
With the revised tariff, revenue is projected to rise to Rs 7,854.94 crore, while the remaining Rs 2,420.78 crore will be met through subsidy and grant-in-aid support from the J&K Government.
The Commission, as per the order, has reviewed the tariff proposal submitted by JPDCL and KPDCL, where a 5 per cent tariff increase across categories was submitted. The Commission reviewed the letter issued by the Government of Jammu and Kashmir, Power Development Department (Letter No. PDD-ACC/11/2026-05 dated 08.05.2026) regarding the reduction of existing consumer categories and sub-categories in terms of RDSS norms and tariff hike for the proposed categories and sub-categories at 5 per cent across the board.
The Commission reviewed the submission made by the Petitioners and approved the revision in existing consumer categories and sub-categories appropriately, as per details provided in the detailed order.
The Commission has factored in the financial support of Rs 2,420.78 crore committed by the Government of the Union Territory of Jammu and Kashmir as tariff-related subsidy support under Section 65 of the Electricity Act, 2003, subject to payment or release of subsidy in accordance with law.
The Commission observes that if the entire unmet revenue gap at existing tariff is met through tariff increase alone, without considering grant-in-aid or subsidy support, the tariff increase would be around 40 per cent, which would result in tariff shock to consumers in the UT of J&K.
Accordingly, the Commission has approved a moderate tariff increase and has considered the Government subsidy or grant-in-aid support to meet the balance unmet revenue gap for FY 2026–27. The approved average tariff increase in FY 2026–27 over FY 2025–26 is 6.83 per cent.
For metered domestic consumers, the revised energy charge will be Rs 2.45 per unit for consumption up to 200 units, Rs 4.20 for 201–400 units, and Rs 4.60 per unit beyond 400 units.
The order also rationalises consumer categories and sub-categories in line with Revamped Distribution Sector Scheme (RDSS) norms and provides for Time-of-Day tariff provisions for eligible consumers.
