Srinagar, September 22, 2026: Electricity consumers in Jammu and Kashmir are expected to contribute an additional ₹251 crore in 2026-27 following the recent revision in power tariffs, the government informed the Jammu and Kashmir Legislative Assembly on Tuesday.
The disclosure came in a written reply to a question raised by MLA Sajad Gani Lone. According to the Power Development Department, the 6.83% average tariff increase notified by the Joint Electricity Regulatory Commission (JERC) is projected to generate ₹251 crore in additional revenue for the Union Territory’s electricity distribution companies during the current financial year. The revised tariffs came into effect from September 1, 2026.
Government Says Tariff Revision Needed to Bridge Revenue Gap
The government stated that the tariff revision was required to address the gap between the cost of electricity supply and revenue realised and to meet the Annual Revenue Requirement (ARR) of the distribution companies.
Despite the tariff revision, the government said it would continue to provide more than ₹4,500 crore in subsidy towards meeting the power purchase costs of the DISCOMs.
The tariff decision has already generated political debate in J&K, with opposition parties staging protests and demanding relief for consumers. The government, meanwhile, has maintained that the increase was necessary to address the financial position of the power sector.
Government Departments Owe ₹4,385.30 Crore
The Power Development Department also informed the Assembly that outstanding electricity dues from Jammu and Kashmir Government and Central Government departments stood at ₹4,385.30 crore.
The figures highlight the significant revenue-recovery challenges facing the power distribution sector even as the government seeks to improve collections and reduce the gap between expenditure and revenue.
Kashmir Valley Domestic Revenue Rises
The government’s reply also provided details of revenue collected from domestic consumers in the Kashmir Valley.
Domestic electricity consumers generated ₹1,455.90 crore during 2025-26, compared with ₹1,238.07 crore in 2024-25.
During the current financial year, revenue collected from domestic consumers up to August 2026 stood at ₹547.79 crore. Of this, ₹383.08 crore came from metered consumers, while ₹164.71 crore was collected from flat-rate consumers.
200 Units Free Electricity Scheme Linked to Rooftop Solar
The government also clarified the status of the scheme providing 200 units of free electricity to eligible Antyodaya Anna Yojana (AAY) households.
According to the reply, the benefit is being implemented through a RESCO-based rooftop solar model under the PM Surya Ghar: Muft Bijli Yojana. The tendering process is currently under evaluation.
Eligible households will begin receiving the benefit after the rooftop solar systems are commissioned.
The development comes amid broader efforts to strengthen J&K’s power distribution infrastructure. The Union Territory’s 2026-27 budget has also outlined measures aimed at improving the financial sustainability and reliability of the power sector.
