Srinagar, Oct 15: Jammu and Kashmir is yet to implement the additional 20 per cent peak-hour power surcharge under the Time of Day (ToD) tariff system, despite a recent 6.83 per cent electricity tariff hike, largely due to inadequate metering and billing infrastructure.

Officials said nearly 90 per cent of domestic consumers have a sanctioned load below the 10-kilowatt threshold, placing them outside the category covered by the surcharge under the existing framework.
The Joint Electricity Regulatory Commission (JERC) introduced ToD tariffs for eligible consumers, excluding the agriculture sector, from September 1, subject to the availability of compatible metering and billing infrastructure.
The system provides for higher electricity charges during peak-demand hours and rebates during off-peak periods. ToD tariffs for commercial and industrial consumers with maximum demand exceeding 10 kW have been applicable since April 1, 2024.
However, even eligible domestic and commercial consumers are not being charged the additional 20 per cent surcharge because the required infrastructure is not fully in place, officials said.
A senior Power Development Department engineer said manual meter readings make it difficult to accurately record consumption across peak and off-peak periods. Smart meters linked to data centres are necessary to ensure accurate readings and uniform billing.
Jammu and Kashmir has around 25 lakh electricity consumers, nearly half of whom are yet to be metered, while some continue to use conventional meters.
Former technical secretary and engineer Bashir Ahmad Dar said ToD-compatible smart meters transmit consumption data at half-hourly intervals and distinguish between different time slots, enabling bills to reflect the applicable rates.
He said the system could also benefit businesses by encouraging them to shift operations to off-peak hours. Eligible commercial establishments may receive rebates of around 10 per cent for consumption during designated off-peak periods, subject to the applicable tariff schedule.
The delay comes amid persistent power shortages despite Jammu and Kashmir’s estimated hydropower potential of 18,000 MW. Of the 14,867 MW identified, only 3,540.15 MW has been harnessed.
Official data show that peak power demand reached 3,063 MW in 2026, with a deficit exceeding 200 MW. Demand in Kashmir frequently touches or crosses 1,800 MW, forcing the Power Development Department to resort to unscheduled power cuts.
The Union Territory continues to rely heavily on power purchases, particularly during winter. Officials have cited procurement costs of nearly ₹10 per unit against consumer rates of around ₹2 per unit, adding to the government’s financial burden.
JERC recently raised electricity tariffs by 6.83 per cent for domestic and commercial consumers to address the widening revenue gap. The projected cost of energy stands at ₹10,275.72 crore against estimated revenue collections of ₹7,352.87 crore, leaving a deficit of ₹2,922.85 crore.
Completing smart-meter installation and enabling time-based billing remain key challenges as the power department seeks to manage demand and reduce financial losses.