Vikram Sharma
JAMMU: The Jammu and Kashmir Union Territory (JKUT) government has initiated a comprehensive review of the Jammu Power Distribution Corporation Limited (JPDCL) to address its persistent Aggregate Technical and Commercial (AT&C) losses.
Despite improvements, J&K’s power sector continues to grapple with significant challenges as its AT&C losses remain among the highest in the country.
Recent data shows a reduction in AT&C losses from 63% in 2021-22 to 44% in 2023-24. However, this figure is still alarmingly high compared to the national average of 15%.
This stark disparity underscores the pressing need for targeted interventions to curb these losses, which include both technical and commercial inefficiencies.
AT&C losses represent a combination of technical losses, arising from inadequate infrastructure, and commercial losses, which result from billing errors, electricity theft, and non-payment. In J&K, the unique geographical and infrastructural challenges exacerbate these losses.
The region’s mountainous terrain necessitates extensive low-tension (LT) lines to supply electricity to scattered households, which significantly increases power wastage and supply costs. Official estimates reveal an annual loss of approximately Rs 5,000 crore due to revenue shortfalls and distribution inefficiencies.
Efforts to mitigate these losses have shown gradual progress. Official sources indicate that AT&C losses decreased to 58% in 2021-22, further reduced to 51% in 2022-23, and reached 40% in 2023-24. The government aims to bring these losses down to 31% in the current fiscal year and to 25% by 2025-26. In the 2023-24 fiscal year, JPDCL reported AT&C losses at 35%, while the Kashmir Power Distribution Corporation Limited (KPDCL) recorded a higher rate of 45%.
Smart metering has emerged as a pivotal strategy in addressing these inefficiencies. So far, 627,000 smart meters have been installed in Jammu and Srinagar, with plans to add another 50,000 by the end of 2024.
Under the Revamped Distribution Sector Scheme (RDSS), the energy sector in J&K aims to install an additional 1.4 million smart meters. This initiative seeks to reduce AT&C losses to below 15% in the long term.
However, the prevalence of unmetered areas remains a critical concern, particularly in the Kashmir Valley. As of now, only 32% of residential consumers are metered, leaving 68%, approximately 663,520 consumers, charged on a flat-rate basis. This lack of metering significantly contributes to energy losses. Notably, J&K is the only Union Territory where electricity is still supplied to consumers without proper metering.
The financial implications of these losses are severe. J&K’s government currently bears a subsidy loss of Rs 3.75 per unit of electricity sold. Addressing this issue requires not only enhanced metering but also improved billing and collection efficiencies.
Recognizing the gravity of the situation, Principal Secretary of the Power Development Department (PDD), H. Rajesh Prasad, recently reviewed JPDCL’s functioning.
He emphasized the government’s top priority of achieving 100% smart metering on all feeders and distribution transformers (DTs). He also urged officials to focus on reducing losses at divisional and sub-divisional levels to align with the national target of 15%.
The Principal Secretary highlighted the region’s unique challenges, pointing out that J&K has one of the lowest power tariffs in the country, while power purchase prices remain high and require advance payments. This further stresses the need for efficient management of resources and improved revenue collection mechanisms.
During the review meeting, Yasin Chaudhary, Managing Director of JPDCL, provided an in-depth presentation on the corporation’s performance metrics. He outlined progress in areas such as billing efficiency, collection efficiency, and overall revenue generation.
“As of November 2024, JPDCL’s total revenue collection had reached Rs 1,661.54 crore, marking a 20.49% increase compared to the previous year,” informed Yasin Chaudhary.
