Srinagar, Aug 22 (JKNS): The Joint Electricity Regulatory Commission (JERC) for Jammu & Kashmir and Ladakh has approved an average 6.83% increase in power tariff for Jammu and Kashmir for 2026-27, with the revised rates coming into effect from September 1, 2026.
According to the JERC order, a copy of which lies with news agency JKNS stated that, the bills for electricity consumed from September 1 onwards will be calculated as per the revised tariff rates.
The Commission said the Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL) had sought a tariff revision to bridge their revenue gap, with the DISCOMs proposing a 5% across-the-board increase.
₹10,275.72 Crore Revenue Requirement, ₹2,922.85 Crore Gap
As per the order, the total Annual Revenue Requirement (ARR) of JPDCL and KPDCL, after the Commission’s prudence check, has been assessed at ₹10,275.72 crore, while revenue under the existing tariff is estimated at ₹7,352.87 crore.
This leaves a revenue gap of ₹2,922.85 crore for the two distribution companies.
The Commission observed that meeting the entire gap through tariff alone would have required an increase of around 40%, which it said would have resulted in a significant tariff shock for consumers.
Government Subsidy Helps Limit Tariff Burden
The Commission has taken into account ₹2,420.78 crore in financial support committed by the J&K Government as subsidy under Section 65 of the Electricity Act, 2003.
With the revised tariff, the projected revenue of the two DISCOMs will rise to ₹7,854.94 crore, while the remaining gap of ₹2,420.78 crore will be met through government grant-in-aid.
The revised tariff is applicable from September 1, 2026, and consumers will be billed at the new rates for electricity consumed from that date. (JKNS)
