Srinagar: Jammu and Kashmir has been directed to continue charging domestic consumers of electricity on the existing power tariff instead of the newly introduced Tariff of the Day (ToD) in the ongoing fiscal year. This put the Union Power Ministry’s 20 per cent surcharge under the ToD system on hold after the J&K government decided to continue providing subsidised power to the domestic segment, said an official.
Kashmir and Jammu Power Development Corporation Limited (KPDCL) had petitioned the Joint Electricity Regulatory Commission (JERC) for increasing the 20 per cent surcharge on consumers in morning and evening hours. A copy of the petition showed the extra tariff has been proposed across domestic and non-domestic sectors during peak hours, defined as 6 am to 9 am and 5 pm to 10 pm daily. Barring the agriculture sector, the surcharge has been sought for household consumers, industries, government and public utilities.
But ETV Bharat accessed an official order of Chairman Raj Kumar Chaudhary, JERC for Jammu & Kashmir and UT of Ladakh, accepting the government’s grant-in-aid proposal for both power utilities in the Union Territory.
Chief Minister Omar Abdullah, who holds the power portfolio, through a letter, has told the JERC that the government will bridge the revenue gap by providing grant-in-aid to both power utilities in Jammu as well as Kashmir.
But the government has made it clear that high-power-consuming industrial units should not be given subsidies on power tariffs, “as their substantial power requirement often necessitates procurement of power at higher rates.”
“However, other categories of consumers shall continue to get the power on the already notified subsidised rates without any enhancement in the tariff during the current financial year, i.e., 2025-26,” said an official communique.
The ToD Tariff system by the power ministry mandates power distribution companies (DISCOMS) across the country, including Jammu and Kashmir, to surcharge the tariff during eight hours (solar hours).
The new tariff system was introduced through an amendment to the Electricity (Rights of Consumers) Rules, 2020. The new power pricing charges different rates based on the time of day, with higher rates during peak demand hours and lower rates during daytime hours. This structure allows consumers to be charged for electricity according to the time of day. It means the tariff during peak hours will be 10 to 20 per cent higher than during the daytime.
The ToD tariff for commercial and industrial consumers with a maximum demand of more than 10 KW has been made effective from 1 April, 2024. Barring agriculture, the rest of the consumers, domestic and non-domestic, should follow the surcharge by April 1, 2025, said a notification issued in June 2023 and seen by ETV Bharat.
“Time of Day tariff shall be made effective immediately after installation of smart meters,” it added.
The move had invited strong resentment, with stakeholders including the Kashmir Chamber of Commerce and Industry (KCCI).
Jammu and Kashmir is facing an energy deficit in winters and is importing almost 90 per cent of its electricity from outside, as hydropower generation has dipped to its lowest, between 150 and 200 megawatts, due to low discharge in rivers.
