KPDCL eyes 20% tariff hike when its transmission losses are 47%
Srinagar, Nov 23: With Aggregate Technical & Commercial (l AT&C) losses touching 47 percent—the highest in the region and among the worst in the country—officials are questioning why Kashmir Power Development Corporation Limited (KPDCL) is shifting the burden of its failures onto consumers.
This concern has intensified after the KPDCL petitioned the Joint Electricity Regulatory Commission (JERC) seeking approval to impose a 20 percent surcharge on electricity consumed during peak hours, a move that has triggered widespread public anger and political backlash across the Valley.
According to KPDCL’s tariff petition for the financial year 2025–26, the surcharge would apply between 6 am and 9 am and 5 pm and 10 pm hours when Kashmiri households rely most on heating, lighting and cooking during winter. KPDCL claims the surcharge is meant to “rationalise power demand” and reduce stress on the distribution network.
But officials argue that the timing exposes KPDCL’s internal inefficiencies. With 47 percent transmission and distribution losses, far above the national average, the corporation continues to struggle with theft, poor billing efficiency and technical leakages—core issues that remain unresolved even as consumers are being asked to pay more.
Despite repeatedly stating in its petition that it is not seeking a tariff hike, the inclusion of the 20 percent peak-hour surcharge is widely seen as a hidden increase.
KPDCL operates under the elected government, with the Chief Minister holding the power portfolio, placing the administration at the centre of a growing controversy.
Adding to the criticism, the Omar Abdullah government is under scrutiny for its pre-poll promise of providing 200 units of free electricity to consumers. With the imposition of a proposed peak-hour surcharge, officials say the contrast is striking. “On one hand, the government promised free units; on the other, it is now seeking to impose an additional burden on people during the harshest winter hours,” an official commented.
Political irony was amplified when National Conference spokesperson Tanvir Sadiq posted on X that the “Omar Abdullah–led government will oppose” the surcharge proposal. “In a harsh Kashmiri winter, power is a necessity, not a luxury. The Omar Abdullah–led government will not allow the people of J&K to be burdened with any such unfair and ill-timed proposal,” he said.
The statement drew immediate reactions, with officials questioning how the ruling party could oppose a proposal submitted by a corporation functioning under its own administration. “Who exactly is the National Conference opposing? KPDCL is under the government. If they are serious, they can simply recall the petition,” an official told Greater Kashmir.
According to the tariff petition, KPDCL has projected a significant surge in electricity demand next year. Projected sales are expected to rise from 5,868.70 million units in FY 2024–25 to 6,726.95 million units in FY 2025–26—an increase of 858.25 million units driven by expanding consumption.
The proposed surcharge spans domestic and non-domestic users, government departments, public street lighting and LT/HT waterworks.
A senior official confirmed that if approved, the surcharge would directly increase consumer bills. “For seven hours every day, people will have to pay 20 percent more for electricity. The surcharge will apply uniformly across categories,” the official said.
KPDCL currently supplies power to 12.44 lakh consumers through 338 receiving stations, 1,292 HT feeders and 47,886 distribution transformers. Despite these assets, the Valley continues to face frequent outages, voltage fluctuations and unscheduled curtailments. Consumers argue that KPDCL should ensure better supply before adding new financial burdens.
With winter intensifying and public discontent rising, the matter now lies with the Joint Electricity Regulatory Commission, which will examine the petition, objections and KPDCL’s justification before issuing its final tariff order.
