KCCI files objections before JERC against KPDCL’s proposed 20% surcharge

Srinagar, Nov 28: The Kashmir Chamber of Commerce and Industry (KCCI) has formally submitted its objections and feedback before the Joint Electricity Regulatory Commission (JERC) for the Union Territories of Jammu & Kashmir and Ladakh in response to the Kashmir Power Development Corporation Limited’s (KPDCL) petition seeking approval of its Aggregate Revenue Requirement (ARR) and Tariff Proposal for the financial year 2025–26.

The submission of written objections/feedback follows the open JSERC hearing on 20th November, 2025 in which Secretary General KCCI Faiz Bakshi had vehemently opposed the 20 pwer cent surcharge, said a press release.

In its submission, KCCI expressed deep concern over KPDCL’s proposal to impose a 20% Time of Day (ToD) surcharge during peak hours, describing it as an indirect tariff hike that would disproportionately burden domestic, commercial, and industrial consumers. The Chamber stated that although KPDCL claims to have proposed no tariff increase, the imposition of a steep surcharge during the busiest consumption hours effectively translates into a significant financial escalation for consumers already struggling under economic pressures.

KCCI argued that the proposal is premature and technically unfeasible, given that nearly half of Kashmir’s consumers are still not equipped with smart meters capable of recording time-based consumption. Without universal smart metering, there is no scientific or equitable mechanism to differentiate between peak and off-peak usage. Introducing such a surcharge, the Chamber noted, would lead to widespread billing inaccuracies, consumer disputes, and discriminatory treatment between metered and non-metered households.

The Chamber also highlighted that KPDCL’s proposal lacks fairness, as it seeks to penalize consumers during peak hours without offering any corresponding rebate for off-peak usage—an essential feature of ToD tariff systems followed across the country. A one-sided model focused solely on revenue enhancement, KCCI said, undermines the regulatory principles of balance, equity, and consumer protection.

Additionally, the Chamber called attention to the stagnation in local power generation capacity, noting that no new power projects have been commissioned since 2015. This shortfall forces the UT to depend heavily on costly power purchases, a consequence of planning gaps that, the Chamber insisted, should not be compensated through consumer surcharges.

KCCI also reminded the Commission of the provisions of the Electricity (Rights of Consumers) Rules, 2020, which mandate automatic compensation for outages and service deficiencies—rules that remain unimplemented. Instead of safeguarding consumer rights, the Chamber said, the present proposal seeks to increase costs without ensuring reliable service, it said.

In its prayer before the Commission, KCCI requested the complete rejection of the proposed 20 per cent peak-hour surcharge, calling it unfair, impractical, and contrary to consumer interests. The Chamber urged the Commission to mandate ensure strict implementation of consumer compensation rules.