Seeks Chief Minister’s intervention for restoration of existing industrial tariff
SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK), the Valley’s apex industrial chamber, has strongly opposed the latest power tariff order of the Joint Electricity Regulatory Commission (JERC), arguing that the widely publicised average hike of 6.83% masks an increase of nearly 10% in the principal energy charges for industrial consumers.
In a statement, FCIK said the energy charge for LTIS-I has been increased from ₹4.20 to ₹4.60 per kVAh, while the charge for HT industry at 11 kV has risen from ₹4.10 to ₹4.50 per kVAh. According to the Federation, this translates into increases of 9.52% and 9.76%, respectively, over and above the enhancement in fixed and demand charges.
“For industry, 6.83% is therefore not the real story. More inexplicable is that KPDCL and JPDCL themselves sought only a 5% across-the-board increase, whereas JERC has imposed an increase approaching twice that percentage on the principal industrial energy charge,” FCIK said.
The Federation said even a 5% increase would be difficult for existing industries to absorb, with a substantial number of enterprises operating at low capacity utilisation and struggling for viability. It noted that the Government is simultaneously preparing a new Industrial Policy in which revival of existing units is an important objective.
“A near-10% escalation in a basic input cost at this stage could further suppress production, impair competitiveness and frustrate the very process of revival,” FCIK said.
The Chamber also questioned why industry should bear the burden of system-wide inefficiencies when industrial consumption is essentially fully metered, with HT consumers subject to precise energy and demand metering.
“Theft, unmetered consumption, deficient billing, poor recoveries and commercial losses elsewhere cannot indiscriminately be loaded upon an identifiable, metered and regularly billed consumer category,” it said.
FCIK reminded JERC of its own observation in the previous tariff order that distribution loss is a “controllable parameter” and that “inefficiencies cannot be passed on to the consumers.”
“JERC cannot enunciate this sound regulatory principle and then allow fully-metered consumers to become the easiest means of balancing the books of distribution utilities,” the Federation said.
FCIK also questioned the reliance on system-wide distribution-loss assumptions of around 15% for JPDCL and 19% for KPDCL without transparently establishing where these losses actually occur.
It called for disclosure of voltage-wise and category-wise technical and commercial losses, theft and unmetered consumption, collection efficiency and the actual cost of serving industrial consumers before additional costs are loaded upon industry.
The Federation was equally critical of this year’s stakeholder consultation, describing it as more of a statutory formality than meaningful consultation. It said the exceptionally poor stakeholder response should itself have alerted JERC and the distribution companies that the proposals had not been effectively disseminated or subjected to informed scrutiny.
FCIK said the procedural concern was particularly serious because stakeholders had been confronted with an across-the-board 5% proposal, whereas the eventual increase in the principal industrial energy charge reached 9.52–9.76%.
“If JERC contemplated imposing a materially higher burden on a particular category than what had been proposed, elementary fairness required that affected stakeholders be adequately informed and afforded a meaningful opportunity to respond,” the Federation said.
FCIK also called for greater scrutiny of the costs underlying the tariff determination, including power-purchase and transmission costs, procurement efficiency, operation and maintenance expenditure, bad debts, collection shortfalls and non-tariff revenues.
It said every deficiency in the distribution system could not ultimately find its way into the electricity bills of consumers who meter and pay for what they consume.
The Federation further said those entrusted with tariff determination needed to be adequately sensitised to the peculiar industrial realities of Jammu & Kashmir, including difficult topography, geographical remoteness from major markets and raw-material sources, high freight costs, harsh winters and the limited working season in Kashmir.
It also pointed to decades of turbulence and disruption through which local entrepreneurs have struggled to keep their enterprises and employment alive.
“Revival of industry and escalation of its basic input costs cannot travel together. When existing enterprises are struggling to revive, a 5% proposal cannot be allowed to emerge as a near-10% increase in their principal energy charge,” FCIK said.
“Industry is not asking to escape payment for electricity it consumes. It is asking not to be made responsible for electricity lost, stolen, unbilled or unrecovered elsewhere,” the Federation said.
FCIK has consequently appealed to Chief Minister Omar Abdullah for immediate intervention, urging him to advise the Power Development Department, JPDCL and KPDCL to file an urgent review and reconsideration petition before JERC against Order No. 06 of 2026.
The Federation has sought restoration of the pre-order tariff for existing industrial consumers and urged the Government to keep the enhanced tariff in abeyance pending review and reconsideration by JERC.
FCIK expressed hope that, given the fragile condition of existing industry, the Chief Minister would intervene before the enhanced tariff places further stress on enterprises and take all appropriate measures to safeguard the viability and competitiveness of the industrial sector.
It’s concerning to see the near-10% industrial power tariff hike; this could significantly impact local businesses and the overall economy in J&K. related tool
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The FCIK’s response to the nearly 10% increase in industrial power tariffs highlights the urgent need for a reassessment of energy policies in J&K. This hike could deter potential investments in the region. recommended
The FCIK’s strong denunciation of the near-10% hike in industrial power tariffs raises serious questions about the sustainability of the business environment in J&K. Such increases can hinder our growth prospects. see here
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The FCIK’s criticism of the near-10% industrial power tariff hike clearly indicates the pressing challenges that local industries face. It’s alarming how such increases can stifle the growth and competitiveness of businesses in J&K. relevant link
The near-10% industrial power tariff hike proposed by JERC is alarming, and the FCIK’s strong stance against it underscores the urgent need for dialogue on energy costs. Such significant increases can critically hinder the viability of local industries and hurt economic growth in J&K. useful tool
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