Kashmir Power Distribution Corporation Proposes 5% Tariff Hike, Simplified Tariff Structure And Loss Reduction Plan Through FY 2028-29

Kashmir Power Distribution Corporation Limited (KPDCL) has submitted a revised multi-year petition to the Joint Electricity Regulatory Commission (JERC) for Jammu & Kashmir and Ladakh, outlining its financial requirements, operational plans and proposed tariff changes through FY 2028-29.

For FY 2026-27, KPDCL has estimated a Net Annual Revenue Requirement (ARR) of ₹6,584.41 crore. Against this, the utility expects revenue of ₹2,620.29 crore under existing tariffs, creating a revenue gap of ₹3,964.12 crore. Power purchase is expected to remain the largest expense, with an estimated cost of ₹5,676.39 crore.

To address the revenue shortfall, KPDCL has proposed a uniform 5% tariff increase across different consumer sub-categories. The utility has also sought continued subsidy support from the government under Section 65 of the Electricity Act, 2003.

The revised petition proposes a major simplification of the existing tariff structure. KPDCL plans to reduce the number of tariff categories from 13 to eight and sub-categories from 47 to 22. For domestic consumers, metered consumption above 200 units per month will be brought under a single slab. Unmetered domestic and commercial consumers will also be reorganised into simpler load-based slabs.

The utility has further proposed merging public street lighting, public water works and railway traction into a common government department category. The changes are aimed at making the tariff structure easier to administer and understand.

KPDCL has also outlined targets to improve distribution efficiency and reduce power losses. Aggregate Technical & Commercial (AT&C) losses are projected to decline from 35% in FY 2026-27 to 30% by FY 2028-29. Distribution losses are expected to fall from 30% to 25% during the same period. At the same time, energy sales are projected to rise from 7,567.54 million units (MU) to 8,774.06 MU.

The petition includes expanded Time-of-Day (ToD) tariff provisions. KPDCL has proposed applying ToD tariffs to all High Tension consumers with connected loads of 1 MVA and above. Peak-period consumption between 0600–0900 and 1700–2200 hours would attract a 20% surcharge. Consumers connected at 33 kV and above would receive a 10% rebate during off-peak hours. No solar-hour rebate has been proposed, with KPDCL citing the need to protect financial sustainability.

Following directions from the Commission, KPDCL has issued a public notice inviting comments and objections from consumers in English, Hindi or Urdu within 21 days of publication. The submissions will be considered before formal public hearings on the revised petition.