J&K: Power dues recovery rate less than 50 per cent, discoms under stress

Jammu, March 6

The recovery rate of power dues in Jammu and Kashmir was less than half which has put a pressure on the power department. As per an official spokesperson of the Power Development Department (PDD), in the financial year 2022-23, while the power purchase cost amounted to Rs 9,886 crore, the collection from the sale of power to consumers was only Rs 3,652 crore.

Stating that Jammu and Kashmir is the only Union Territory across the country where consumers are still provided electricity without meters, the spokesperson said that the areas ‘saturated with smart meters’ are experiencing significantly reduced losses and improved power supply.

“Concerted efforts are underway to convert the entire consumer base of Jammu and Kashmir to the modern prepaid metering systems so as to ensure a better power supply,” the spokesperson said.

As such, the spokesperson said, it is important to recognise that electricity isn’t a free service, “rather, it incurs costs at every stage of its journey, from generation at the source to transmission and ultimately distribution. Often, consumers are only aware of the distribution agency, remaining unaware of the intermediate stages and entities involved in supplying electricity to them. At each juncture of the supply chain, accurate measurement of electricity is paramount to maintain a supply-demand balance, ensuring the financial viability of the sector. Despite meticulous measurement throughout these stages, it’s worth noting that accurate measurement and accounting of electricity consumption at the consumers’ end remains a challenge in J&K.”

“It is pertinent to mention that in J&K, the electricity tariff being charged from consumers stands as one of the lowest across the country,” the spokesperson added.

He said that installing a smart electricity meter can help bear the load of shooting high energy prices and address the fundamental issues plaguing the distribution sector. Smart meters enable precise billing based on actual usage, eliminating the surprise of unexpectedly high bills due to inaccuracies. These tools can quickly detect power outages allowing for a faster response time to restore power. Customers can monitor their electricity usage in nearly real-time and make changes to their consumption patterns leading to lower electricity bills.

The first phase, which started in the year 2022, stands completed with installation of 1.5 lakh smart meters in Jammu and Srinagar cities. The second phase covering 5.50 lakh smart meters is under implementation while the third phase, which comprises remaining 14 lakh smart meters, has also commenced, targeted for completion by 2026, thereby accomplishing 100% smart metering in J&K.

“As regards the electricity tariff rates being charged from consumers, the said rates are determined and approved by independent Regulatory Commissions and not by the Discoms taking into account various factors such as cost of power purchase from generating companies, transmission expenses, staffing, and maintenance costs, etc., to ensure that consumers are charged fairly. For example, in J&K, the Joint Electricity Regulatory Commission (JERC) is responsible for determining the electricity tariff,” he said.

The official said this is evident from the fact that the metering percentage in J&K is distressingly low with only 51% consumers metered and as such, being charged on flat-rate basis.

He further informed that regarding power availability, there persists a misconception among consumers that J&K is a power surplus Union Territory due to its abundant water sources. However, the reality is that J&K relies solely on hydropower plants for electricity generation, which are subject to limitations due to seasonal dependence.

The hydro power plants generate at their maximum capacity only during 4-5 months of peak water flow in rivers, while their generation diminishes for the rest of the year.

Quantitatively, out of the existing installed generation capacity of 3,500 MW, 1,140 MW is contributed by UT-owned plants, the main ones being 900 MW Baglihar, 110 MW Lower Jhelum, and 110 MW Upper Sindh, while the remaining 2,300 MW comes from central sector plants such as Salal, Dul-Hasti, Uri, and Kishanganga.

During winters, power houses in J&K, under both central and state sectors, can only generate a maximum of 600 MW against their rated capacity of 3500 MW due to reduced water levels in the rivers, the official said.

However, with peak demand reaching up to 3,200 MW during winters, it is evident that J&K’s power demand cannot be solely met by hydroelectric power plants. So the remaining power requirement during winters is met through thermal-based central generating stations (CGS) situated outside J&K.

Smart meter installation

• In financial year 2022-23, while the power purchase cost amounted to Rs 9,886 crore, the collection from the sale of power to consumers was only Rs 3,652 crore
• Metering percentage in J&K is distressingly low with only 51% consumers metered and as such, being charged on flat-rate basis
• Admn now installing smart electricity meters, which can help address the fundamental issues plaguing the distribution sector
• The first phase, which started in the year 2022, stands completed with installation of 1.5 lakh smart meters in Jammu and Srinagar cities
• The second phase covering 5.50 lakh smart meters is under implementation while the third phase, which comprises remaining 14 lakh smart meters, has also commenced, targeted for completion by 2026