Kashmir Digits

In a jolt to the common man in Kashmir the Kashmir Power Distribution Corporation Limited (KPDCL) has mooted an idea to hike the power tariff in the Valley by 12.46% during the 2022-23 financial year.

This move is contentious as it comes at a time with people still reeling from back to back lockdowns for the past 2 years and when the power department failed to provide adequate electricity in the holy month of Ramadhan.

“The old tariff plan was for the year 2015-2016, since then there was no revision. This hike is due in five years,” KPDCL Chief Engineer Javaid Yousuf Dar told Kashmir Observer on Tuesday.

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He further added that this is a very “reasonable hike” and is going to be the lowest tariff in the country.

The department has put the power tariff petitions in the public domain for inviting objections and suggestions. The petition has been filed before the Joint Electricity Regulatory Commission for Jammu and Kashmir.

“We will complete the exercise by the end of this month and thereafter the Commission will take a final decision on the proposed tariff hike,” Dar said.

As per the existing tariff, the KPDCL charges Rs 1.69 per unit up to 100 units per month, Rs 2.00 per unit for 101 to 200 units per month, Rs 3.30 per unit for 201 to 400 units per month and Rs 3.52 per unit for more than 400 units per month.

However, it has now proposed Rs 2 per unit up to 200 units per month, Rs 4 per unit for 201-400 units per month and Rs 5 per unit for more than 400 units per month.

As per the petition, the KPDCL has mentioned that in the year 2019-20, the cumulative revenue gap was to the tune of Rs 1604.95 crore while the same increased to Rs 5890.76 crore in the year 2020-21.

Similarly, the gap further increased to Rs 9898.63 crore during the financial year 2021-22 and at the existing tariff the cumulative revenue gap will increase to Rs 13145 crore during the current financial year (2022-23).

On these grounds, the KPDCL has proposed an average tariff hike of Rs 12.46% with the mention that projected revenue billed for 2022-23 financial year at the proposed tariff is Rs 2199.20 crore. “The proposed tariff would lead to an increase in revenue by Rs 243.60 crore”, the petition said.

However, the KPDCL has kept the proposed tariff for metered and unmetered categories of consumers as well as non-domestic and commercial consumers in line with that of Jammu Power Distribution Corporation Limited (JPDCL).