Power Tariff Hike To Add Rs 251 Crore Burden On J&K Consumers: Govt

(MENAFN- Kashmir Observer) Srinagar- Consumers in Jammu and Kashmir are expected to bear an additional burden of Rs 251 crore following the recent revision in electricity tariffs, the government informed the Legislative Assembly on Tuesday.

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In a written reply to a question raised by MLA Sajad Gani Lone, the Power Development Department said the 6.83 per cent tariff hike notified by the Joint Electricity Regulatory Commission (JERC) is expected to generate an additional Rs 251 crore in revenue for the power distribution companies (DISCOMs) during 2026-27.

The government said the tariff revision was necessitated by the gap between the cost of supplying electricity and revenue realised by the DISCOMs, besides meeting their Annual Revenue Requirement (ARR).

Despite the tariff revision, the government said it would have to provide more than Rs 4,500 crore in subsidy towards the power purchase cost of the DISCOMs.

The department also informed the House that power tariff dues amounting to Rs 4,385.30 crore remain outstanding against Jammu and Kashmir and Central Government departments.

On revenue collection, the government said domestic consumers in Kashmir Valley generated Rs 1,455.90 crore in 2025-26, compared to Rs 1,238.07 crore in 2024-25.

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During the current financial year, revenue collection from domestic consumers stood at Rs 547.79 crore up to August. Of this, Rs 383.08 crore was collected from metered consumers, while Rs 164.71 crore came from flat-rate consumers.

The government also informed the Assembly that the scheme providing 200 units of free electricity to eligible Antyodaya Anna Yojana (AAY) households is being implemented through a RESCO-based rooftop solar scheme under the PM Surya Ghar: Muft Bijli Yojana.

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The tendering process for the scheme is currently under evaluation. Eligible households will start receiving the benefit after the rooftop solar systems are commissioned.

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