The Joint Electricity Regulatory Commission (JERC) for the Union Territories of Jammu and Kashmir and Ladakh has demonstrated wisdom in delaying the proposal by the Jammu and Kashmir Power Development Department (JKPDD) that would have imposed an additional 20% charge for the evening and morning peak hours of electricity usage.
This represents more than just the normal bureaucratic processes; it is a significant success for consumer rights, economic common sense, and equitable governance.
The JERC has provided a clear service to its consumers by taking into account how the people of Jammu and Kashmir and Ladakh are affected by the needs of both society and the economy. Instead of imposing harsh tariffs on people and businesses in a time of economic hardship, the JERC has demonstrated its clear preference for steady, fair tariffs versus those that would have resulted in added economic burden to many residences and businesses.
The proposed Time-of-Day Tariff (ToD) is typically used as a way to manage demand within an electrical network. However, considering the existing political and economic climate of Jammu and Kashmir and Ladakh, this proposal was ill-timed and ill-conceived.
This decision by the JERC reaffirms that regulatory agencies exist solely to protect the consumer and that the imposition of any change in tariff must be just and reasonable, and must consider the consumer’s ability to pay. Based on the vast amount of concern that would have arisen from a 20% increase in consumer tariffs, the JERC has clearly set the standard for future tariff increases.
By eliminating a new operational cost for businesses and households due to strained disposable income, the JERC has taken a step that will help the overall economy by continuing to foster an environment that allows for businesses to operate without a new significant expense in their operations, while creating a level of confidence in their ability to grow.
The JERC is not saying that it is not supporting any reforms; instead, it is stating that it will take a much more comprehensive view when it comes to making decisions in regards to the electricity market.
The JERC’s main focus is on addressing the root causes of the power sector issues, including developing solutions to mitigate the high rate of aggregate technical and commercial (AT&C) losses experienced and increasing the efficiency of bill collection, as well as ensuring the reliability of service delivery to customers.
By focusing on these types of sustainable solutions, the JERC will create long-lasting improvement for the industry that will benefit the system and customers without having to create additional financial burdens through new fees on customers.
