Kashmir Impulse Desk
Srinagar, Aug 26
The Federation of Chambers of Industries Kashmir has filed a review petition with the Joint Electricity Regulatory Commission challenging higher power tariffs for existing industrial consumers and seeking an interim stay.
The 17-page petition challenges JERC Order No 06 of 2026, dated August 20, and seeks continuation of pre-order tariffs until the review is decided.
FCIK said Kashmir Power Distribution Corporation Ltd and Jammu Power Distribution Corporation Ltd had proposed a 5 percent across-the-board increase, but JERC raised the main energy charge for low-tension industry from Rs 4.20 to Rs 4.60 per kVAh, an increase of 9.52 percent.
For high-tension industry at 11 kV, the charge rose from Rs 4.10 to Rs 4.50 per kVAh, an increase of 9.76 percent, besides higher fixed and demand charges.
FCIK said the widely cited 6.83 percent overall tariff increase did not reflect the increase faced by industrial consumers.
The federation questioned the basis for the higher industrial tariff, saying the utilities did not have category-wise and voltage-wise cost-of-supply data required for a transparent determination.
It also challenged the inclusion of distribution inefficiencies in the tariff, citing assumed losses of 19 percent for KPDCL and 15 percent for JPDCL, projected collection efficiency of 93 percent and more than Rs 102 crore provisioned for bad debts.
FCIK referred to JERC’s stated position that distribution losses are controllable and that inefficiencies cannot be passed on to consumers.
The federation also questioned the stakeholder consultation process, saying only three people attended the KPDCL public hearing in Srinagar and that no written objection appeared to have been submitted by a regional organisation or consumer.
FCIK said its representative Shahid Kamili joined the hearing after being contacted by a JERC official after proceedings had begun.
The federation said stakeholders had been asked to respond to a proposed 5 percent increase rather than the near-10 percent industrial increase ultimately approved.
FCIK has asked JERC to restore the previous tariff for existing industry until reliable cost-of-supply data is available.
It has also sought disclosure of category-wise losses, collection efficiency, arrears, bad debts and the methodology used to determine the industrial increase.
Pending the review, FCIK wants billing to continue at pre-order rates, with any difference adjusted after a final decision.
“Industry is not asking to escape the legitimate cost of electricity it consumes,” FCIK said, questioning what category-specific cost or efficiency finding justified the near-10 percent increase.
