Jammu and Kashmir‘s electricity consumers are on the verge of significant changes in how they are billed, following the 2026 draft amendment to the Electricity (Rights of Consumers) Rules. These changes, released by India‘s Ministry of Power on March 12, 2026, aim to modernize the electricity sector and bring tariffs in line with the actual cost of supply.
These amendments are driven by three key factors: the financial collapse of State Electricity Boards, the rise of solar energy, and the advent of smart meters. The original electricity policy, based on the Electricity (Supply) Act of 1948, prioritized development and access over efficiency, featuring flat tariffs and cross-subsidies. However, this model became unsustainable due to suppressed tariffs, theft, and underinvestment, leading to the Electricity Act of 2003, which introduced independent regulators and acknowledged the need for tariffs to reflect supply costs.
Information reaching TahirRihat.com suggests that solar energy’s increasing role has also necessitated changes. The grid now faces challenges in absorbing abundant solar power during daylight hours, followed by supply collapses after sunset, requiring expensive thermal generation at peak cost. Smart meters, capable of recording consumption hourly, make time-based billing both logical and enforceable.
The central element of the amendment is the Time of Day (ToD) tariff, which prices electricity differently based on consumption time. State Electricity Regulatory Commissions must designate at least eight hours as a “solar window,” during which electricity will be priced at least 20% below the normal rate. They must also designate peak hours, no longer than the solar window, during which commercial and industrial consumers pay at least 20% above normal, and other non-agricultural consumers pay at least 10% above. This creates a guaranteed intra-day price spread of at least 40% for commercial consumers, and the Jammu and Kashmir Electricity Regulatory Commission (JERC), which regulates J&K and Ladakh, can widen this spread.
To prevent misuse, the rules stipulate that peak hours cannot exceed solar hours in duration, ensuring that premium rates do not dominate the billing day. The implementation deadlines are April 2027 for commercial and industrial consumers with contracted demand above 10 kilowatts, and April 2028 for all other non-agricultural consumers. Crucially, these deadlines are tied to verified smart meter installation, formally linking infrastructure and legal obligation.
The amendment also addresses net metering. Currently, rooftop solar owners export surplus daytime power to the grid and draw equivalent units back at night, paying only the net difference. According to the Ministry of Power, the cost to distribution companies, which must manage grid balancing and procure expensive peak-hour replacement power, has become unsustainable. The amendment allows regulators to levy a progressive grid-use charge on prosumers with solar installations above 5 kilowatts, while smaller installations remain exempt.
A third provision introduces demand response, offering financial incentives for consumers who voluntarily curtail consumption during periods of acute grid stress. For large hospitals, hotels, cold storage units, and industrial establishments, this mechanism will be closely monitored once JERC designs its incentive structure.
Jammu and Kashmir’s situation is unique compared to most of India, presenting advantages if the region acts strategically. Under the Revamped Distribution Sector Scheme (RDSS), J&K has commissioned 3,81,671 smart meters, representing 40% of its RDSS target. Confirmed before the J&K Legislative Assembly in February 2026, over 12.36 lakh smart meters are now operational, including those from the predecessor PMDP scheme.
The impact of these meters is already evident. AT&C losses have fallen from 58% in 2022 to approximately 32% today, with a target of 12% by 2028. Billing efficiency has risen from 56% to 69%, and collection efficiency from 75% to 94%. According to official acknowledgment, an AT&C loss of 58% meant the utility recovered the cost of only 42 units for every 100 it supplied. J&K was the only union territory in India where a significant portion of consumers had never been connected to a meter at all, making smart metering a precondition for a functioning system.
J&K also benefits from a structural energy asset due to hydropower. The territory operates 32 hydropower projects with 3,540 MW of installed capacity, with a further 3,704.5 MW targeted for commissioning by 2030-31, against a total identified potential of 14,867 MW.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.