||Black and White Digital News ||

||Tejveer Singh July 25 ,2024 ||

SRINAGAR : In a significant relief for power consumers in Jammu & Kashmir, the government has decided to absorb any increase in electricity tariffs for the current financial year (2024-25). This decision comes amidst rising power purchase costs and inflationary pressures.

The J&K Power Development Department (PDD) announced that the government will continue to provide subsidies on electricity bills to offset projected tariff increases by the Distribution Companies (discoms)—JPDCL for the Jammu region and KPDCL for the Kashmir region. The spokesperson of the PDD highlighted that the rising power purchase costs, largely due to increasing coal prices, would have necessitated a tariff hike without government intervention.

Subsidy Continuation:The government’s subsidy will cover the additional costs, ensuring that consumers do not face any tariff hikes despite the rising costs of power purchases and operational expenses.

Tariff History:After a six-year period without a tariff hike, a 17% increase was implemented in October 2022. For FY 2023-24, although a 15% hike was applied to metered consumers, the government removed a 15% Electricity Duty, resulting in no net increase in consumer bills.

Current Scenario: For FY 2024-25, the government has once again refrained from increasing electricity tariffs, with the estimated loss borne by the government.

The PDD spokesperson also noted that a proposal for a tariff increase had been submitted to the Joint Electricity Regulatory Commission (JERC) for approval. However, due to the government’s decision, there will be no effective tariff increase for consumers.

Reforms and Improvements:

Smart Metering: Rapid implementation of smart meters is underway to eliminate unmetered consumers, who significantly contribute to high Aggregate Technical and Commercial (AT&C) losses. J&K now ranks among the top seven states in the country for smart metering implementation, having exceeded six lakh installations.

Load Rationalization:Discoms are conducting calibrated load rationalization in unmetered areas based on actual electricity usage to prevent inflated bills and adhere to Electricity Supply Code regulations.

Infrastructure Upgrades:The PDD is implementing various reforms under the Revamped Distribution Sector Scheme (RDSS), including the segregation of agricultural feeders, High Voltage Distribution Systems (HVDS), and advanced SCADA and RT-DAS systems. These upgrades aim to provide reliable and high-quality electricity services.

Investment and Future Goals:

With an investment of Rs. 5,600 crore under RDSS over the next two years, the J&K power sector is poised for a significant transformation. The goal is to provide 24×7 uninterrupted and affordable power supply to all consumers, ensuring better quality and reliability.

The decision to continue the subsidy and prevent tariff hikes highlights the government’s commitment to alleviating the financial burden on consumers while pushing forward with critical reforms to improve the power sector’s efficiency and reliability.