Opposition and Trade Bodies Denounce Tariff Hike
The Joint Electricity Regulatory Commission's (JERC) approval of a 6.83% average increase in retail power tariffs for Jammu & Kashmir, effective September 1, has drawn sharp criticism from opposition parties and trade bodies. The National Congress (NC) government, led by Chief Minister Omar Abdullah, faces accusations of betraying its poll promise, with the Leader of Opposition, Sunil Sharma, calling the move a "betrayal of the people of Jammu and Kashmir."
Sharma, in statements carried by multiple outlets, said the NC had promised 200 units of free electricity per household but had not fulfilled the commitment nearly two years after the 2024 Assembly elections. "The NC government promised 200 units of free electricity to every household. But instead of fulfilling that commitment, people are now facing an increase in electricity tariffs," he said. He added that the hike, expected to come into effect from September 1, would further burden families already grappling with inflation.
The People's Democratic Party (PDP) leader Muntazir Mehdi termed the hike "yet another burden on the people of Jammu and Kashmir," while People's Conference chief Sajad Lone said people would now have to pay more out of pocket, noting an increase in load in non-metered areas that would raise monthly bills.
Beyond opposition, National Conference's own MP Aga Syed Ruhullah Mehdi openly criticized the government. "We told people that we will give them 200 units of free electricity. But for two years, we were not able to give 200 free units," he said, recalling that before elections Omar Abdullah had said meters would be thrown into the river. Ruhullah also acknowledged understanding the logic of installing meters, but noted the hike of nearly 7%.
KCCI (Kashmir Chamber of Commerce and Industry) expressed "serious concern and strong resentment" over the hike, calling it insensitive and ill-timed. The chamber said Jammu and Kashmir's economy is already in a challenging phase, with sectors like industry, tourism, handicrafts, retail, and horticulture under stress, and that the tariff rise would compound problems by increasing operational costs. KCCI, which participated in previous JERC stakeholder consultations, said the public hearing was not adequately publicised and recalled assurances from Chief Minister Omar Abdullah that there would be no hike. It demanded a rollback and keeping the increase in abeyance until the economy improves.
Federation of Kashmir Industries (FCIK) also opposed the order, noting industrial energy charges rose by nearly 10%. Specific charge increases include LTIS-I from Rs 4.20 to Rs 4.60 per kVAh (a 9.52% rise) and HT industry at 11 kV from Rs 4.10 to Rs 4.50 per kVAh (9.76%). FCIK also questioned why metered consumers bear the cost of distribution inefficiencies such as theft and unmetered consumption.
The Promise vs. Reality Gap
Central to the criticism is the NC's election promise of 200 units of free electricity. Sunil Sharma highlighted a "stark contradiction" between the party's electoral promises and its performance, demanding answers instead of slogans. PDP leader Waheed ur Rehman Para called the hike "anti-people and anti-poor," urging the government to step out of its "lavish corridors" and face reality. Apni Party president Altaf Bukhari also opposed the hike, saying the ruling party had breached trust.
The government's stance acknowledged the metering issue. Indian Express, based on CM, reported that urban areas are metered while several rural areas still get electricity as per old agreements, citing an impediment to providing 200 free units. Officials stated that 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 government is providing Rs 2,420.78 crore as a direct subsidy this year, about 24% of the total cost.
Government's Defense
In contrast to the opposition's accusatory tone, Chief Minister Omar Abdullah defended the hike, explaining: "Allowing for inflation over the last four years and the increased quantity of electricity we are supplying to the consumers, we are still subsided power to a rate extent." He criticized political opponents, noting that previous governments had hiked tariffs by more than 14% and 15% with no such controversy. "We are not celebrating the tariff increase. This is a compulsion," he said.
Earlier, the NC government's manifesto promised free 200 units but after elections, only Antyodaya Anna Yojana (AAY) households were covered. Chief Minister. This discrepancy is what fuels accusations of betrayal from various quarters.
Perspectives
Opposition Parties: They universally accuse NC of betrayal, highlighting the unmet promise of 200 free units and calling the hike a burden on consumers.
Trade Bodies: Groups like KCCI and FCIK assert economic challenges, asking for a rollback until the economy improves, emphasizing the hike's damaging effect on industry.
Chief Minister and Government: Omar Abdullah and officials argue that the hike is a compulsion due to inflation and rising supply costs, and note the continued subsidy to consumers.