Electricity tariff hiked across J&K, Ladakh UTs
The Jammu Kashmir admin and UT of Ladakh have approved a hike of 17.29 % increase in the average power tariff ‘ in the region.
The new power tariff, as per the Joint Electricity Regulatory Commission (JERC), which has been revised after 2016-17, will be effective from October Ist, 2022 in Jammu Kashmir, according to a report by Daily Excelsior.
The Joint Electricity Regulatory Commission (JERC) on Thursday ordered an 8% to 22% hike in domestic, industrial, commercial, and agriculture power tariff across the union territories of Jammu & Kashmir and Ladakh.
Jammu Kashmir admin has also approved the hike for various categories right from BPL to the domestic, commercial, and heavy Industries.
According to an official spokesman, the average overall nominal increase over the previous tariff, which was last revised in 2016–17, is only about 8% for some segments, while the inflation rate in the same period is 24% (the CPI Combined: All India General Index (All Groups) has increased from 131.1 in April 2017 to 162.5 in July 2022). Therefore, it is safe to say that there is an effective decrease in tariffs of 16%. (adjusted for inflation). According to the spokesman, J&K’s new updated power rate is far less expensive than those in Delhi, Punjab, Haryana, and Rajasthan.
The new electricity tariff has been created in a way that will cause the public the least amount of difficulty while also safeguarding the interests of the domestic, commercial, agricultural, and industrial sectors, the commission’s order read.
The Commission decided to offer two price structures: a full cost tariff that does not take into account the government grant-in-aid that the JPDCL/KPDCL received in the amount of Rs. 2116.14 crores, and a subsidized tariff that does take into account the grant-in-aid.
The difference was calculated to be worth Rs 2703.09 crore with the current rate, and with the grant-in-aid support, it was reduced to Rs 606.95 crores. The Commission has consequently estimated the revenue objective following tariff modification to be Rs 4116.39 crores.
According to the order, “The rates for Below Poverty Line consumers have been kept unchanged at Rs 1.25 for up to 30 units per month while as for domestic category consumers, for up to 200 units per month, the rate will be Rs 2 per unit, almost unchanged from before, for 200 to 400 units per month, the rate will be Rs 3.50 per unit, an increase of 6% in 5 years and for more than 400 units per month, the rate will be Rs 3.80 per unit.”
In the commercial category, the hike is 9%. For LT industrial electricity hike of 11% has been ordered. The hike for HT industrial sector is 22%.