Kashmir Impulse Desk
Srinagar, Aug 25
Jammu and Kashmir’s electricity regulator has told power distribution companies to reduce losses and said inefficiencies in their operations cannot be passed on to consumers.
The Joint Electricity Regulatory Commission approved an average 6.83% increase in electricity tariffs for 2026-27, with the new rates due to take effect from Sept. 1.
The commission directed Kashmir Power Distribution Corporation Ltd (KPDCL) and Jammu Power Distribution Corporation Ltd (JPDCL) to take steps to curb distribution losses.
“The actual losses cannot be considered and inefficiencies cannot be passed on to the consumers,” JERC said.
It classified distribution losses as a controllable parameter, requiring the two companies to reduce losses through measures within their control rather than recover them from consumers.
JERC provisionally retained loss targets of 19% for KPDCL and 15% for JPDCL for the three-year control period.
The targets for 2027-28 and 2028-29 will be reviewed in future annual revenue requirement orders based on the companies’ actual performance, the commission said.
The regulator said losses could result from technical and commercial deficiencies and pointed to measures including better network management, metering, billing and enforcement.
JERC said the restructuring of the power sector was intended to make the utilities more self-reliant and cost-efficient.
It also said financial support and grants provided during the initial phase of restructuring would need to be gradually phased out, with future revenue requirements expected to be met through consumer tariffs.
