No power tariff hike: JERC | 20% peak-hour ToD surcharge put on hold

Srinagar, Jan 1: There will be no power tariff hike for domestic consumers in Jammu and Kashmir till March 2026, with the 20 percent peak-hour surcharge under the Time of Day (ToD) framework kept on hold, the power regulator has ruled, citing consumer interest and policy considerations.

In its tariff order issued on December 31, the Joint Electricity Regulatory Commission (JERC) directed that domestic consumers shall continue to be billed under the existing tariff structure, notwithstanding the Union Ministry of Power’s push for nationwide implementation of ToD tariffs.

Referring to the central mandate, the commission said, “Ministry of Power, Government of India, under the Electricity (Rights of Consumers) Rules, 2020, has mandated that the ToD tariff shall be charged during peak hours at 20 percent higher than the normal period tariff.”

However, the commission clarified that this provision would not apply to domestic consumers at this stage.

“The same is already included in the existing tariff, and so, the surcharge is continued as 20 percent,” the order states, adding that its applicability is restricted in scope.

Clearly defining the categories covered, the commission ruled, “ToD tariff will be applicable for HT consumers getting supply at 33 kV or higher level. The rebate of 20 percent is applicable for solar hours.”

This effectively exempts domestic and other low-tension consumers from the peak-hour surcharge during the ongoing tariff period.

Officials said the decision follows the Jammu and Kashmir government’s choice to continue subsidised power for the domestic segment, particularly in view of winter demand patterns and economic conditions in J&K.

The commission acknowledged stakeholder participation in the process, recording that “several points were raised and discussed during the State Advisory Committee (SAC) meeting, which have been duly noted by the commission.”

While granting relief to households, JERC approved a combined Aggregate Revenue Requirement of nearly Rs 6900 crore for the two distribution companies for FY 2025-26.

The order also flags a combined revenue gap of over Rs 1430 crore, arising mainly from high power purchase costs and dependence on imported electricity during winter.

At the same time, the commission took a firm view on efficiency, underlining that losses cannot be loaded onto consumers.

“The actual losses cannot be considered, and inefficiencies cannot be passed on to the consumers,” the order states, while applying the loss trajectory approved under the Revamped Distribution Sector Scheme.

The commission further observed that while government support continues in the transition phase following the unbundling of the power sector, “the financial support and grant-in-aid provided initially needs to be gradually phased out over the period.”

The tariff order has come into force from January 1, 2026, and will remain valid till March 31, 2026, unless amended or extended.

For domestic consumers, electricity will continue to be supplied at existing rates, with no ToD-based peak-hour surcharge during this period.