KPDCL petitions JERC, seeks 20% peak-hour power tariff surcharge

Srinagar, Nov 20: The Kashmir Power Development Corporation Limited (KPDCL) has proposed a 20 per cent surcharge on electricity consumption during peak hours, sparking significant backlash from trade bodies, civil society groups, and tourism stakeholders during a public hearing convened by the Joint Electricity Regulatory Commission (JERC) here.

According to the tariff petition for the financial year 2025–26, accessed by Greater Kashmir, KPDCL has sought approval for imposing the surcharge across a wide range of consumer categories. Although the petition does not indicate any across-the-board tariff hike, it clearly proposes a 20 percent surcharge for electricity consumed during peak hours—defined as 6 am to 9 am and 5 pm to 10 pm daily, a total of eight hours.

The surcharge is proposed for domestic and non-domestic consumers, state and central government departments, public street lighting, LT and HT public water works, and other key categories. The petition states that this measure is intended to “rationalise power consumption during high-demand intervals” and “reduce stress on the distribution network.”

A senior KPDCL official confirmed to Greater Kashmir that the proposal, if approved, would mean a direct increase in consumer bills during these hours. “This implies that for seven hours a day, consumers will have to pay 20 percent higher tariff on power consumption. The surcharge will apply uniformly,” the official said, adding that it was aimed at “managing load and ensuring efficient power distribution.”

However, the proposal drew immediate and sharp criticism at the JERC public hearing held at the Banquet Hall, Srinagar, under the chairmanship of Chairperson JERC. Participants argued that the Valley is already grappling with one of the most severe power crises in recent years, marked by long, unscheduled outages and insufficient supply.

Faiz Ahmad Bakshi, Secretary General of the Kashmir Chamber of Commerce and Industry (KCCI), strongly opposed the move, describing it as “insensitive and ill-timed.”

“We opposed the KPDCL’s move before the JERC. This is not the stage to burden consumers further. The economy of Kashmir is at its lowest, industries are struggling, and households are already paying high tariffs without receiving reliable electricity,” Bakshi said. “You cannot penalise consumers during peak hours when they need electricity the most.”

Chairman of the Kashmir Houseboat Owners Association, Manzoor Ahmad Pakhtoon, also raised concerns, particularly for the tourism sector.

“I opposed the proposal in the meeting. Tourism operators, including houseboat owners, are already facing rising operational costs. A 20 per cent surcharge during peak hours will push many of us into further financial distress,” Pakhtoon said.

Several civil society members present at the hearing questioned the logic of levying higher charges during peak hours when consumers have no control over outage schedules. Many argued that imposing a surcharge without first addressing the Valley’s chronic power reliability issues was unjustified.

“When people are already enduring long cuts, how can the corporation ask for more money?” said one civil society representative. “First give uninterrupted power, then talk of surcharges.”

The JERC officials noted that all objections and suggestions raised during the hearing would be considered before a final decision is taken on the tariff petition.