Power tariff hike puts Rs 251 crore burden on consumers, Govt Admits in Assembly

Srinagar : Consumers in Jammu and Kashmir will have to pay an additional Rs 251 crore due to recent tariff hike, the government admitted in the Legislative Assembly on Tuesday.

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

The government said the tariff revision was long overdue and was required to bridge the gap between the cost of electricity supply and revenue realised and to meet the Annual Revenue Requirement (ARR) of the DISCOMs.

The government said it would still have to bear more than Rs 4,500 crore as subsidy to meet the power purchase cost of the DISCOMs.

The department also revealed that power tariff dues amounting to Rs 4385.30 crore are outstanding against Jammu and Kashmir and Central Government departments.
On revenue collection, the government informed that domestic consumers in Kashmir Valley generated Rs 1,455.90 crore in 2025-26, compared to Rs 1,238.07 crore in 2024-25.

During 2026-27 up to August, the revenue stood at Rs 547.79 crore, including Rs 383.08 crore from metered consumers and Rs 164.71 crore from flat-rate consumers.

The government further said the scheme providing 200 units of free electricity to eligible AAY households is being implemented through a RESCO-based rooftop solar scheme under the PM Surya Ghar: Muft Bijli Yojana. The tendering process is under evaluation, and eligible households will start receiving the benefit after commissioning of the rooftop solar systems.—(KNO)