J&K Power Tariff Hike Draws Opposition Fire, Omar Government Cites Subsidies
J&K faces political heat over 6.83% power tariff hike from Sept 1; opposition protests, CM cites subsidies and past hikes.
The Jammu and Kashmir administration led by Chief Minister Omar Abdullah is facing sharp criticism from opposition parties over a power tariff hike approved by the Joint Electricity Regulatory Commission (JERC). The average increase of 6.83 per cent will take effect for consumption from September 1, 2026, to March 31, 2027.
The Power Development Department had proposed a 5 per cent increase, but the regulator's own assessment resulted in the higher approved figure. Opposition parties, including the BJP, PDP, and J&K Apni Party, held protests in Srinagar on Monday, accusing the government of betraying its poll promise on electricity.
PDP leader Waheed ur Rehman Para demanded the immediate and unconditional withdrawal of the hike, calling it "anti-people and anti-poor." The protests come as electricity was a major issue in the last assembly elections.
Chief Minister Abdullah defended the move, saying the government continues to subsidise power significantly despite inflation and increased supply. He pointed out that previous governments, including those led by his critics, had hiked tariffs by 14-15 per cent without similar outrage. "We are not celebrating the tariff hike. This is a compulsion," he said.
Government officials noted that even after the increase, consumers pay only part of the actual cost of supply. The average cost of supplying electricity is about Rs 6.87 per unit, while consumers are billed around Rs 5.25 per unit. The UT administration will provide a direct subsidy of Rs 2,420.78 crore this year, covering about 24 per cent of the total cost.
J&K's entry-level domestic tariff of Rs 2.45 per unit remains lower than neighbouring states like Himachal Pradesh, Punjab, Chandigarh, and Delhi. However, officials explained that this is possible only because subsidies cover a larger share of the gap, not because power costs less to supply. J&K's cost of supply is comparable to or higher than Punjab's and Himachal's, both of which reduced tariffs this year due to surpluses.
Rural areas in both provinces still receive electricity under old agreements, which the chief minister has previously cited as a hurdle in delivering 200 free units per household.