SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has filed a review petition before the Joint Electricity Regulatory Commission (JERC), challenging the enhanced electricity tariff for existing industrial consumers and seeking an interim stay on its implementation.
The 17-page petition challenges JERC Order No. 06 of 2026 dated August 20, arguing that the actual increase imposed on industrial consumers is significantly higher than the 6.83 per cent overall tariff revenue increase publicised after the order.
FCIK said the principal energy charge for low-tension (LT) industry was increased from Rs 4.20 to Rs 4.60 per kVAh, a rise of 9.52 per cent, while the charge for high-tension (HT) industry at 11 kV was raised from Rs 4.10 to Rs 4.50 per kVAh, an increase of 9.76 per cent. Fixed and demand charges were also enhanced.
The industry body questioned the basis for the increase, particularly as the tariff order itself acknowledges that category-wise and voltage-wise Cost of Supply data are not currently available with the distribution companies.
FCIK said the absence of such data made it difficult to establish why industrial consumers should face an increase of nearly 10 per cent when KPDCL and JPDCL had proposed a 5 per cent across-the-board hike.
The federation has also challenged the inclusion of distribution inefficiencies in the tariff burden on industry. It pointed to assumed distribution losses of around 19 per cent for KPDCL and 15 per cent for JPDCL, projected collection efficiency of 93 per cent and provision of more than Rs 102 crore towards bad debts.
FCIK said these costs should not be passed on to consumers, particularly the industrial sector, which is largely fully metered.
The petition also refers to the DISCOMs’ business plans, which project stagnation or only marginal growth in the industrial sector over the next three years. FCIK said increasing electricity costs while acknowledging a weak industrial outlook could further affect the sector.
The federation has also raised concerns over the stakeholder consultation process in Kashmir. It said only three people attended the KPDCL public hearing in Srinagar and claimed that no written objections were filed by any organisation or consumer from the region.
FCIK said its Head of Advisory Committee, Shahid Kamili, attended the hearing only after being contacted by a JERC official after the proceedings had begun, leaving little opportunity to study the proposals and consult industry members.
It further argued that stakeholders had been invited to respond to a proposed 5 per cent across-the-board increase and not to the nearly 10 per cent industrial increase ultimately approved.
FCIK has sought restoration of the pre-order tariff for existing industrial consumers until reliable category-wise and voltage-wise Cost of Supply data are determined. It has also sought disclosure and scrutiny of category-wise losses, collection efficiency, arrears, bad debts and the methodology used to determine the industrial tariff.
Pending disposal of the review petition, the federation has sought an immediate suspension of the enhanced tariff and continuation of billing at pre-order rates, subject to final adjustment.
“Industry is not asking to escape the legitimate cost of electricity it consumes,” FCIK said, questioning what category-specific cost or efficiency finding justified imposing nearly 10 per cent on industry when the data required to establish the sector’s actual cost of supply were unavailable.
