Jammu & Kashmir is entering a critical decade in its energy landscape. While the power sector continues to operate on outdated, decades-old infrastructure, the region is simultaneously preparing for a massive surge in electricity demand. Official projections indicate that the Union Territory is likely to witness a 49.42% increase in power demand by 2034–35, underscoring the need for strategic planning, upgraded grids, and consumer-friendly policies.
However, growing public anger over a newly proposed 20% surcharge on electricity consumed during peak hours has intensified the debate around power reforms in the region.
A controversial proposal by the Power Distribution Corporations in J&K has sparked widespread resentment. The Corporations have approached the Joint Electricity Regulatory Commission (JERC) seeking approval for a 20% surcharge over the base tariff for electricity consumed during declared peak hours — 6–9 AM and 5–10 PM.
These time slots are crucial for most households, especially during freezing winter months when heating needs spike. If approved, electricity bills would rise by one-fifth per unit during peak hours, a burden residents say they cannot afford.
The proposal follows the guidelines issued by the Union Power Ministry, which had earlier suggested similar Time-of-Day (ToD) tariff mechanisms in other states—though most did not implement them. The final call now rests with the State Electricity Regulatory Commission.
In their petition for the financial year 2025–26, the Corporations described the surcharge as a “standard” ToD tariff mechanism, intended to reduce peak load by encouraging consumers to shift usage to off-peak hours. Officials argue this measure will ease stress on the grid during harsh winters when heating demand surges sharply.
Consumer bodies, trade associations, and political leaders have rejected the proposal, calling it a “hidden tariff hike”.
The Kashmir Chamber of Commerce and Industry (KCCI), which voiced its objection at the recent JERC hearing, argued that residents have no practical alternative but to use electricity during mornings and evenings. With sub-zero temperatures in many areas, households rely on power for heating, lighting, and essential daily routines.
Opponents claim the policy is unfair and insensitive to ground realities, particularly when the region already suffers from intermittent power cuts and infrastructure issues.
Power Demand Expected to Grow Nearly 50% by 2034–35
Amid this controversy, officials continue to warn about a sharp rise in power consumption over the next decade. Data shows that J&K will likely see a 6% annual increase in peak demand from 2025–26 to 2034–35.
Projected Year-wise Growth in Electricity Demand
- 2025–26: 5%
- 2026–27: 4%
- 2027–28: 4%
- 2028–29: 3%
- 2029–30: 5%
- 2030–31: 4%
- 2031–32: 4%
- 2032–33: 3%
- 2033–34: 5%
- 2034–35: 4%
These continuous increases point to expanding residential needs, industrial growth, and higher winter consumption.
Demand Projections Higher Than National Estimates
Officials highlight that J&K’s internal projections exceed the figures published in India’s 20th Electric Power Survey (EPS). Hence, ongoing studies rely on UT-specific data for more accurate forecasting.
The demand profile for 2034–35 is modeled using the 2022–23 consumption pattern, incorporating real solar generation profiles and Capacity Utilisation Factors (CUFs) provided by J&K agencies.
Planned Capacity Additions by 2030
To bridge the widening demand-supply gap, J&K plans to add:
- 392 MW of coal-based power (Shakti Scheme)
- 620 MW of solar energy capacity
- 1206 MW of hydropower capacity
These additions aim to strengthen energy security, diversify the power mix, and reduce dependence on external supply.
As Jammu & Kashmir transitions toward higher electricity consumption, the government faces a dual challenge:
meeting future demand while ensuring electricity remains affordable for citizens.
With widespread public opposition to the proposed 20% peak-hour surcharge, policymakers must evaluate whether such measures are truly viable for a region battling harsh winters, high heating needs, and aging infrastructure.
