Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has opposed the latest power tariff order issued by the Joint Electricity Regulatory Commission (JERC), alleging that industrial consumers have been subjected to a nearly 10 per cent increase in energy charges despite the widely publicised average tariff hike of 6.83 per cent.
In a statement, the industry body said the energy charge for Low Tension Industrial Supply-I (LTIS-I) consumers has been increased from Rs 4.20 to Rs 4.60 per kVAh, while the charge for High Tension (HT) industrial consumers at 11 kV has been raised from Rs 4.10 to Rs 4.50 per kVAh. According to FCIK, the revisions amount to increases of 9.52 per cent and 9.76 per cent, respectively, in addition to higher fixed and demand charges.
The chamber said Kashmir Power Distribution Corporation Limited (KPDCL) and Jammu Power Distribution Corporation Limited (JPDCL) had sought a five per cent across-the-board tariff increase, but the revised industrial energy charges were significantly higher.
FCIK argued that many industrial units in Jammu and Kashmir are operating below capacity and facing viability challenges. It claimed that a steep rise in electricity costs could adversely affect production, competitiveness and efforts to revive existing industries under the proposed Industrial Policy.
The Federation also questioned the rationale for passing system-wide inefficiencies onto industrial consumers, stating that industrial consumption is largely metered and billed. It said losses arising from theft, unmetered consumption, poor recoveries and billing deficiencies should not be transferred to fully metered consumer categories.
Referring to previous tariff orders, FCIK said JERC had earlier described distribution losses as a controllable parameter and maintained that inefficiencies should not be passed on to consumers.
The chamber further sought disclosure of category-wise and voltage-wise technical and commercial losses, theft figures, collection efficiency and the actual cost of serving industrial consumers. It also criticised the stakeholder consultation process, claiming that affected stakeholders were not adequately informed about the extent of the proposed increase in industrial energy charges.
FCIK called for greater scrutiny of power purchase costs, transmission expenses, operational and maintenance expenditure, collection shortfalls and non-tariff revenues before imposing additional costs on consumers.
The Federation said tariff determination should take into account the specific challenges faced by industries in Jammu and Kashmir, including difficult terrain, distance from markets and raw material sources, high transportation costs, harsh winters and a limited working season.
FCIK has appealed to Chief Minister Omar Abdullah to intervene and advise the Power Development Department, JPDCL and KPDCL to file a review petition before JERC against Order No. 06 of 2026. It has sought restoration of the previous tariff structure for industrial consumers and requested that the enhanced tariff be kept in abeyance pending review.
