Power Tariff Hike Sparks Major Political Uproar In J&K

The announcement has ignited sharp political reactions, with opposition parties accusing the Omar Abdullah–led government of delivering a “new shock” instead of the promised 200 units of free electricity. Former minister and BJP vice president for J&K, Priya Sethi, criticised the move, saying the National Conference (NC) government had come to power on “lofty promises” but had instead burdened consumers ahead of the winter season. “The common consumer in Jammu and Kashmir is left asking: where is the free power we were promised?” she said.

The tariff revision follows proposals submitted by the Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL), both of which had sought a 5 per cent across-the-board increase to meet their revenue requirements. After a detailed prudence check, the Commission assessed the combined Annual Revenue Requirement (ARR) of the two corporations at ₹10,275.72 crore. Under the existing tariff, projected revenue stood at ₹7,352.87 crore, leaving a revenue gap of ₹2,922.85 crore.

JERC noted that bridging this entire gap through tariff alone would have required a steep 40 percent hike, an increase it deemed untenable for consumers. To soften the impact, the Commission factored in ₹2,420.78 crore in government subsidy under Section 65 of the Electricity Act, 2003. With this support, the revised tariff is expected to raise revenue to ₹7,854.94 crore, while the remaining shortfall will be met through government grant-in-aid.

The Commission has directed that the revised tariff remains applicable from September 1, 2026, ensuring that consumers are billed at updated rates only for electricity consumed thereafter. The order attempts to strike a balance between the financial needs of the distribution companies and the protection of consumers from a severe tariff shock.

Political reactions have intensified since the order became public early Saturday. Critics argue that the NC government has failed to honour its flagship election promise of 200 units of free electricity, made ahead of the 2024 Assembly elections. Instead, they say, households already grappling with inflation and rising living costs are being pushed further into financial strain.

Among the strongest reactions came from Sunil Sharma, Leader of Opposition in the J&K Legislative Assembly. He called the tariff hike a “betrayal of the people”, accusing the government of abandoning its commitment. “Before the elections, the promise was 200 units of free electricity; after the elections, the reality is higher electricity bills,” Sharma said. He warned that the BJP would continue to raise the issue and hold the government accountable for its unfulfilled pledges.

Aga Syed Rahullah, an NC MP, openly acknowledged the widening gap between the party’s election promises and its performance in government, admitting that the pledge of providing free electricity remains unfulfilled even after two years in office. People’s Democratic Party MLA Waheed Ur Rehman Para questioned the government’s shift “from promises of free electricity to the reality of higher bills,” highlighting what he described as a clear reversal of commitments made to voters. J&K Apni Party president Syed Altaf Bukhari said he was “not surprised” by the development, accusing the government of being “designed to trouble people.” He labelled the move as “selfish” and “draconian,” vowing that his party would actively oppose measures that increase the burden on ordinary citizens.

Trade bodies such as the Kashmir Trade Alliance (KTA) have also voiced concern, arguing that the hike will further strain the region’s fragile economy. Ordinary consumers echoed similar sentiments, with many saying the increase contradicts the relief they were promised.