Srinagar, Nov 21: The Kashmir Chamber of Commerce and Industry has strongly opposed the Kashmir Power Development Corporation Limited’s proposal for imposing a twenty percent surcharge on electricity consumed during peak hours, calling the move unjustified, punitive and an attempt to shift the burden of systemic failures onto the people of Kashmir.
The Chamber was represented by its Secretary General, Faiz Ahmad Bakshi, during the hearing of KPDCL’s petition before the Joint Electricity Regulatory Commission of J&K and Ladakh. The meeting was chaired by Chairperson JERC, Raj Kumar Choudhary and Mohd Ashraf, Secretary of the Commission. A detailed, data-backed submission was presented on behalf of KCCI.
KCCI argued that the proposed surcharge effectively penalises consumers for circumstances created by years of stagnation, mismanagement and chronic shortcomings in the region’s power sector. It said KPDCL’s claim that tariffs have not been raised is misleading, as the surcharge is being proposed during peak hours, which are essential-use periods for households, businesses, hospitals and industries. Since consumption during these hours is a necessity, treating it as a premium charge is fundamentally unfair.
The Chamber also sought a complete waiver of demand charges on commercial consumers, who remain under severe strain due to recurring outages, equipment damage, loss of production hours and rising operational costs. It said the business community cannot bear further financial pressure when the power supply itself is unstable, unpredictable and frequently unavailable.
Citing official figures, KCCI highlighted that Kashmir has one of the lowest levels of power reliability in India. According to Central Electricity Authority data for 2022, the System Average Interruption Duration Index stands at 889, while the System Average Interruption Frequency Index is 723.95. These numbers are significantly higher than the national averages of 116.12 and 171.64. Even Jammu performs better with a SAIDI of 489 and a SAIFI of 442. KCCI said these figures show that Kashmir’s power crisis is deep-rooted and long-standing.
The Chamber noted that although J&K has an installed generation capacity of 3,540.15 MW, winter generation collapses to around 900–1,000 MW. It said no new power plant has been added to the generation fleet since 2019, while output from existing plants has declined due to ageing infrastructure and delayed upgrades. As a result, the UT is forced to purchase about 2,180 MW from outside at high winter tariffs, a cost ultimately borne by honest consumers who already face unreliable service.
KCCI stressed that universal metering is yet to be completed, leaving room for large-scale power pilferage and contributing to extraordinarily high AT&C losses of nearly forty-five percent. Instead of addressing these structural gaps, the Chamber said, KPDCL is seeking to impose a surcharge that unfairly targets bill-paying consumers.
It added that consumers across Kashmir continue to suffer long, announced and unannounced power cuts, even in low-loss feeders. Industries face production setbacks and machinery damage, while households struggle during harsh winters when heating, cooking and basic survival depend on electricity. Students preparing for examinations are frequently forced to study without power, and hospitals are compelled to rely heavily on diesel generators, raising costs and compromising service quality.
KCCI reminded the Commission that under the Electricity (Rights of Consumers) Rules, 2020, residents of J&K have the legal right to compensation for service deficiencies. Rule 13 mandates an automatic compensation mechanism for outages and delays. The Chamber said it was deeply concerning that instead of fulfilling these obligations, KPDCL was seeking to introduce a surcharge despite the severely deficient supply.
KCCI said imposing such a surcharge violates principles of fairness, transparency and regulatory accountability. It urged the Commission to reject the proposal and direct KPDCL to prioritise system strengthening, loss reduction, completion of metering, structural reforms and revival of pending power projects. The Chamber asserted that consumers are already burdened by declining generation capacity, costly power imports and chronic inefficiencies, and should not be penalised further.
KCCI reaffirmed its commitment to safeguarding consumer rights and supporting the business community, emphasising that genuine consumers cannot continue to bear the cost of entrenched operational and structural failures in the power sector.
