SRINAGAR, JULY 24: Jammu and Kashmir government has taken a significant decision to absorb any increase in electricity tariff in the current financial year (2024-25) by continuing its support in the form of subsidy on electricity bills.
The decision of the government will effectively offset any rise in tariff requirements as projected by JPDCL and KPDCL for covering the rising power purchase cost, inflation, and other factors and also to bridge the revenue gap.
Providing details on the decision, the spokesperson of the J&K Power Development Department (PDD) informed that a major portion of expenditure constitutes the power purchase cost, which is rising day by day due to the rise in coal prices. Therefore, such escalations in power purchase costs demand an increase in power tariff too. Besides, the discoms incur other sizeable expenditures such as the O&M costs for its expanding infrastructure.
In the absence of any intervention of the Government, the aforesaid expenses would have otherwise been passed on to consumers. He further informed that although a proposal for a tariff increase for FY 2024-25 has been submitted by the discoms to the Joint Electricity Regulatory Commission (JERC) for approval, the government’s decision indicates that there will effectively be no tariff increase for consumers, with the estimated loss on that account being borne by the government.
Speaking about the current tariff in Jammu & Kashmir, which is among the lowest in the country, the spokesperson provided an overview of the tariff revision history. It was highlighted that after a gap of six years without any tariff hike, there was around 17% increase in electricity tariffs implemented in October 2022.
In the tariff revision for FY 2023-24, although metered consumers faced a 15% tariff hike, the government balanced this out by removing the 15% Electricity Duty on energy charges resulting in no net rise in consumer bills. Likewise, for the current financial year (2024-25), Jammu & Kashmir has again refrained from increasing electricity tariffs.
He further mentioned that, in addition to alleviating any additional financial burden on consumers, the department is on a war footing to bring about numerous reforms in the sector under the Revamped Distribution Sector Scheme (RDSS) to ensure better quality and reliable power supply to consumers. This will empower consumers with better control over their budget through transparent and real-time monitoring of their consumption patterns, facilitated by smart meters.
Smart consumer metering is being implemented at a rapid pace to eliminate unmetered consumers, which are significant contributors to high AT&C losses.
Notably, J&K, which had a metering percentage as low as 50% in 2019, now ranks among the top seven states in the country for smart metering implementation, having surpassed the six lakh mark. Despite the improvements observed in smart-metered areas, challenges remain with unmetered consumers, particularly in Kashmir.
To address losses in the unmetered (flat-rate) areas, discoms are conducting calibrated load rationalization based on actual electricity usage and connected loads, ensuring adherence to Electricity Supply Code regulations to prevent inflated bills. Additionally, other reforms such as the 100% segregation of agricultural feeders, High Voltage Distribution Systems (HVDS), AB cables in congested areas, and state-of-the-art SCADA and RT-DAS systems are also under implementation, which will not only automate the system but also fulfill consumer expectations of the today’s modern era.
In this regard, the discoms have been directed to adopt best practices by Electricity (Rights of Consumers Rules) 2020, notified by the MoP, to ensure that consumers receive reliable and high-quality electricity services.
With the aforementioned initiatives and an investment of Rs. 5,600 crore under RDSS over the next two years, the UT is poised to bring about a complete turnaround in the power sector, with the ultimate goal of providing 24×7 uninterrupted and affordable power supply for all consumers.
