Major relief for power consumers: No tariff increase for FY 2024-25

Srinagar, July 24: In a significant move, the Jammu & Kashmir Power Development Department (PDD) has announced that the state government will absorb any increase in electricity tariffs for the financial year 2024-25. This decision comes as the government continues to subsidize electricity bills despite rising power costs.
The government’s decision will offset anticipated tariff increases proposed by distribution companies, JPDCL for Jammu and KPDCL for Kashmir, which are due to escalating power purchase costs, inflation, and other expenditures.
A spokesperson from the PDD explained that the cost of power purchase, driven by rising coal prices and other operational expenses, had necessitated a tariff increase. However, the government’s intervention ensures that consumers will not face higher bills this year. The loss from maintaining current tariff levels will be borne by the government.
Currently, electricity tariffs in Jammu & Kashmir are among the lowest in the country. After a six-year hiatus, a 17% increase was implemented in October 2022. In FY 2023-24, a 15% tariff hike for metered consumers was neutralized by removing a corresponding Electricity Duty, resulting in no net increase in bills. For FY 2024-25, tariffs will remain unchanged.
The PDD also highlighted ongoing reforms under the Revamped Distribution Sector Scheme (RDSS) aimed at improving power supply quality and reliability. The introduction of smart meters is advancing rapidly to replace unmetered connections and reduce high AT&C losses. J&K, which had a metering percentage of just 50% in 2019, now ranks among the top states for smart metering, with over six lakh smart meters installed.
Efforts are underway to address issues in unmetered (flat-rate) areas through load rationalization and compliance with the Electricity Supply Code. The implementation of agricultural feeder segregation, High Voltage Distribution Systems (HVDS), and modern SCADA and RT-DAS systems are part of ongoing improvements.
With an investment of Rs. 5,600 crore under RDSS, the UT aims to transform the power sector over the next two years, striving for 24×7 uninterrupted and affordable power supply for all consumers.