Big Update Regarding Electricity Tarriff’s in J&K
In a significant move, the J&K Power Development Department (PDD) has announced that the Jammu & Kashmir government will absorb any increase in electricity tariff for the current financial year (2024-25). This decision means that power consumers will not face a tariff hike, despite rising power costs.
The government’s subsidy will offset the rise in tariff requirements projected by the Distribution Companies (discoms) to cover increasing power purchase costs, inflation, and other factors. This move will bridge the revenue gap and prevent additional financial burdens on consumers.
A major portion of discoms’ expenditure is power purchase cost, which is rising due to increasing coal prices. This escalation demands a tariff increase, but the government’s intervention will prevent this.
Although discoms have submitted a proposal for a tariff increase to the Joint Electricity Regulatory Commission (JERC), the government’s decision means there will be no effective tariff increase for consumers. The estimated loss will be borne by the government.
Jammu & Kashmir has one of the lowest electricity tariffs in the country. After a six-year gap without a tariff hike, there was a 17% increase in October 2022. However, the government balanced this out by removing the 15% Electricity Duty on energy charges, resulting in no net rise in consumer bills.
For the current financial year (2024-25), Jammu & Kashmir has again refrained from increasing electricity tariffs. The government’s decision will alleviate additional financial burdens on consumers.
The Power Development Department is implementing numerous reforms in the sector under the Revamped Distribution Sector Scheme (RDSS). These reforms aim to ensure better quality and reliable power supply to consumers, including the installation of smart meters.
The UT is poised to bring about a complete turnaround in the power sector, with an investment of Rs. 5,600 crore under RDSS over the next two years. The ultimate goal is to provide 24×7 uninterrupted and affordable power supply for all consumers.
