Sr8nagar: The Kashmir Chamber of Commerce and Industry has filed detailed objections before the Joint Electricity Regulatory Commission for the Union Territories of Jammu and Kashmir and Ladakh, opposing the Kashmir Power Development Corporation Limited’s proposal to impose a 20% Time of Day surcharge during peak consumption hours in the 2025–26 tariff cycle.
The submission follows the public hearing held on 20 November, where KCCI secretary general Faiz Bakshi had strongly argued against the surcharge. In its written objections, the Chamber described the proposal as an indirect tariff hike that would add an undue financial burden on domestic, commercial and industrial consumers already facing economic stress.
KCCI said the proposal was technically premature, noting that nearly half of Kashmir’s consumers still lack smart meters capable of recording time-based usage. Without universal smart metering, the Chamber argued, there is no scientific way to distinguish between peak and off-peak consumption. It warned that the surcharge could lead to widespread billing disputes, inaccuracies and unequal treatment between metered and non-metered households.
The Chamber also criticised the structure of the proposal, saying it penalises consumers for peak-hour use without offering a corresponding rebate for off-peak periods—an essential component of Time of Day tariff systems across India. A one-sided model focused solely on raising revenue, KCCI said, violates principles of equity and consumer protection.
Raising concerns about KPDCL’s performance, KCCI pointed to the utility’s high Aggregate Technical and Commercial losses of around 47%, far above the national average. The Chamber said consumers who pay their bills honestly cannot be held responsible for systemic leakages, infrastructure gaps or administrative inefficiencies. It reminded the Commission that established regulatory norms bar utilities from transferring such costs onto consumers.
KCCI further highlighted the poor quality and reliability of electricity supply in the Valley. Citing Central Electricity Authority data, it noted that Kashmir’s interruption indices remain among the worst in the country, with frequent and prolonged outages affecting households, businesses, healthcare institutions and the education sector. A utility struggling to provide reliable supply, KCCI said, cannot justify charging a premium for peak-hour usage.
The Chamber also drew attention to the stagnation in local power generation. It noted that no new power project has been commissioned in Kashmir since 2015, pushing the Union Territory to depend heavily on costly power purchases. This shortfall, it said, stems from planning gaps which should not be compensated through surcharges on consumers.
Kcci reminded the Commission of the Electricity (Rights of Consumers) Rules, 2020, which guarantee automatic compensation for outages and service deficiencies—provisions that remain unimplemented. Instead of protecting consumer rights, the Chamber said, the current proposal seeks to increase costs without improvement in supply.
In its prayer, KCCI sought complete rejection of the 20% peak-hour surcharge, calling it unfair, impractical and against consumer interest. It also urged the Commission to ensure strict enforcement of consumer compensation rules.
