J-K PDD announces withdrawal of Electricity Duty to alleviate power tariff hike
Nov 25, 2023
Srinagar (Jammu and Kashmir) [India], November 25 : In a strategic move to alleviate the impact of a 15% tariff increase, the Jammu and Kashmir Power Development Department (PDD) has announced the withdrawal of Electricity Duty (ED) in its revised power tariff, said Rajesh Prasad, Principal Secretary, Power Development Department.
The decision, effective December 1, 2023, comes following the issuance of a new Tariff order by the Joint Electricity Regulatory Commission (JERC), Jammu and Kashmir.
The JERC, after thorough consideration and adherence to standard procedures, implemented a 15% tariff hike while maintaining fixed charges at their existing levels. Notably, the revised overall tariff rate remains below the actual procurement costs incurred by corporations in supplying power to consumers, said the official.
To safeguard consumers from an increase in their electricity bills, the Government of Jammu and Kashmir has taken a proactive step by withdrawing the 15% electricity duty previously applied to energy charges in the existing tariff structure. This calculated decision ensures that the overall impact on consumers' electricity bills is nullified, the officials added.
According to the officials, this reform aligns Jammu and Kashmir with other Indian states and UTs, ensuring consumer services are enhanced while ensuring the sustainability of the power sector.
To facilitate this restructuring, a substantial financial package of Rs 5,000 crore was allocated for the comprehensive upgrade of infrastructure under various central sector schemes. This investment aims to create adequate capacities in almost every district, providing regular and quality power supply to citizens.
To ensure that the newly formed corporations are provided with a clean balance sheet, all the outstanding dues on account of power purchases, accumulated to the tune of Rs. 30,700 crore over several years, were taken over by the government and cleared by availing soft loans under GOI schemes like Atmanirbhar Bharat and LPS Rules 2022.
Accordingly, a conducive platform has been provided to the discoms to operate on sound business principles and deliver optimal services to consumers, thereby enhancing overall consumer satisfaction levels, said officials.
