Jammu Mirror
Power Tariff Hike to Cost J&K Consumers Extra Rs 251 Crore; Government Unveils Fiscal Details in Assembly
The ongoing Legislative Assembly session witnessed significant disclosures regarding the Union Territory’s power sector on Tuesday, with the government confirming that electricity consumers across Jammu and Kashmir will shoulder an additional financial liability of Rs 251 crore as a consequence of the latest upward revision in utility rates.
The details emerged through a written submission by the Power Development Department (PDD) responding to queries submitted by MLA Sajad Gani Lone. According to the department, the 6.83 percent tariff adjustment approved by the Joint Electricity Regulatory Commission (JERC) is targeted to yield Rs 251 crore in extra revenue for the power distribution corporations (DISCOMs) through the fiscal year 2026–27.
Justifying the revision, authorities emphasized that an adjustment had been overdue for an extended duration. The administration pointed out that the enhancement is necessary to bridge the recurring gap between the procurement cost of power and actual recovery collections, as well as to fulfill the Annual Revenue Requirement (ARR) mandatory for viable operational stability.
Fiscal Relief & Subsidies
Despite the tariff escalation, the administration reiterated that the public exchequer will continue absorbing substantial liabilities, committing over Rs 4,500 crore in budgetary power subsidies to support DISCOMs against soaring wholesale power purchase expenditures.
However, the disclosures also cast a spotlight on massive institutional unpaid bills. Official figures revealed that government establishments—encompassing both Jammu & Kashmir administrative bodies and Central Government offices—collectively owe staggering power dues of Rs 4,385.30 crore to the department.
Reviewing Valley collection metrics, the department documented notable growth in household revenue. Domestic subscribers in Kashmir remitted Rs 1,455.90 crore during the 2025–26 fiscal year, recording an uptick from the Rs 1,238.07 crore generated in 2024–25. In the current 2026–27 financial term up through August, revenue receipts have reached Rs 547.79 crore—comprising Rs 383.08 crore recovered via metered connections and Rs 164.71 crore from flat-rate billings.
Addressing the commitment regarding welfare relief, the government stated that the initiative granting 200 units of free power to eligible Antyodaya Anna Yojana (AAY) families will be executed through RESCO-based decentralized rooftop solar setups under the PM Surya Ghar: Muft Bijli Yojana framework. The department affirmed that competitive tender evaluations are currently in progress, with beneficiaries set to receive free power allocations immediately following system installations and field commissioning.
