Jammu, August 22: Electricity consumers across Jammu and Kashmir will have to pay more from September 1 after the Joint Electricity Regulatory Commission (JERC) approved an average 6.83 per cent increase in the retail electricity tariff for the 2026–27 financial year.
The revised tariff for Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL) was approved through an order issued on August 20. The new rates will remain applicable until March 31, 2027, unless modified or extended by the Commission.
Under the revised structure, metered domestic consumers will pay ₹2.45 per unit for consumption up to 200 units, ₹4.20 per unit for consumption between 201 and 400 units, and ₹4.60 per unit for consumption above 400 units. The fixed charge has been set at ₹10 per kW per month.
The Commission has retained concessional rates for certain categories, including Below Poverty Line (BPL) households and small agricultural consumers.
BPL domestic consumers consuming up to 30 units per month will be charged ₹1.40 per unit, along with a fixed charge of ₹5 per kW per month. The concession will apply only to consumers holding a valid BPL certificate.
For small agricultural consumers with connections up to 20 HP, the energy charge has been fixed at ₹1.05 per unit, with a fixed charge of ₹23 per HP per month.
Commercial consumers will also see revised rates. Single-phase non-domestic consumers will be charged ₹3.75 per unit up to 200 units and ₹5.70 per unit beyond 200 units, while three-phase commercial consumers will pay ₹6.15 per kVAh.
JERC has also introduced a Time-of-Day (ToD) tariff for eligible consumers with sanctioned load or contract demand above 10 kW, excluding agricultural consumers.
Under the mechanism, industrial and commercial consumers will face a 20 per cent surcharge during peak hours, while other eligible consumers will face a 10 per cent surcharge. A 20 per cent rebate will be available during solar hours, encouraging consumers to shift electricity usage away from peak periods.
The Commission has approved a combined Annual Revenue Requirement (ARR) of ₹10,275.72 crore for JPDCL and KPDCL for 2026–27.
Under the existing tariff, the utilities’ estimated revenue stood at ₹7,352.87 crore, leaving a revenue gap of ₹2,922.85 crore. The revised tariff is expected to raise revenue to ₹7,854.94 crore, while the remaining ₹2,420.78 crore will be met through government subsidy and grant support.
JERC noted that recovering the entire revenue gap through tariffs alone could have required an increase of around 40 per cent, with government support helping limit the impact on consumers.
The Commission has also approved an average power purchase cost of ₹4.88 per unit for 2026–27 and retained distribution loss targets of 15 per cent for JPDCL and 19 per cent for KPDCL.
The revised order further restructures consumer categories and sub-categories in line with the Revamped Distribution Sector Scheme (RDSS) norms and continues the Fuel and Power Purchase Cost Adjustment mechanism.
The new tariff will come into effect for electricity consumption from September 1, 2026.
