Srinagar, Aug 22 (KNO): The Joint Electricity Regulatory Commission (JERC) for Jammu & Kashmir & Ladakh has approved a 6.83% average hike in power tariff for Jammu and Kashmir for 2026-27.
According to an order issued by JERC, a copy of which is in posession of news agency—Kashmir News Observer( KNO), the hike will come into effect from September 1, 2026, and bills issued for consumption from that date will be charged at the new rates.
The regulator said JPDCL and KPDCL had sought a tariff hike to bridge their revenue gap. The Commission had received a proposal for 5% across-the-board increase from the KPDCL and JPDCL.
As per the order, the total Annual Revenue Requirement (ARR) of both DISCOMs after prudence check is Rs 10275.72 crore, while revenue at existing tariff is only Rs 7352.87 crore, leaving a gap of Rs 2922.85 crore.
"If this entire gap was to be met through tariff alone, the hike would have been around 40%, which would have resulted in a tariff shock to consumers," the Commission said.
As per the order, the Commission has factored in Rs 2420.78 crore financial support committed by the J&K Government as subsidy under Section 65 of the Electricity Act, 2003.
With the revised tariff, revenue will go up to Rs 7854.94 crore and the remaining unmet gap of Rs 2420.78 crore will be met through government grant-in-aid—(KNO)