Jammu, September 26: The power tariff in Jammu and Kashmir is likely to be hiked after the reorganisation and unbundling of the Power Development Department (PDD) undertaken by the government and implemented soon after the Central Government abrogated Article 370 on August 5.
Amid the worsening power situation, sources said consumers might be forced to shell out more from the next fiscal as the PDD would be reorgansied into three distribution companies for J&K, Ladakh Union Territories (UT) after October 31 when the new UTs will take shape.
The sources said consultants engaged by the government as per the provision of the J&K Re-organisation Act-2019 passed by Parliament are examining the impact of the repeal of the State Electricity Act-2010 and applicability of the Central Electricity Act-2003.
The State Electricity Regulatory Commission (SERC) can examine the new tariff plan after new companies will approach for revision.
There has been no increase in tariff in the state since 2016 as SERC remained without a head during the PDP-BJP coalition government. It was only in July 2019 that Lokesh Dutt Jha took over as the Chairman after the State Administrative Council (SAC) cleared his name.
“The State Electricity Act is a replica of the Central Act but the power tariffs and recommendations of the authority has not been taken seriously by the successive government. This was the main reason for the revenue deficit hitting the state’s economy badly for successive years,” said a senior SERC official.
As per the existing tariff structure for the domestic consumers for the first 100 units, the tariff is charged at Rs 1.54 per unit. For subsequent 100 units, Rs 2 per unit and maximum if the consumption is beyond 400 units @ Rs 3.50. Added to this is 15 per cent electricity duty (ED) on the monthly bill sent to the consumers.
“The revenue realisation has been the biggest hurdle in carrying out the power reforms. Earlier, the state used to bear the deficit burdening the economy but when some of the operations will be privatised, the entities will not bear the revenue deficit”, said a senior PDD engineer.
As per the provisions of the State Electricity Regulatory Commission Act, 2000 and Regulations made by SERC from time to time, the PDD and Power Development Corporation (PDC) had to submit a petition every year for a tariff revision.
