Less than 50% of power dues are recovered, and the discoms are stressed

The electricity department is under pressure since Jammu and Kashmir’s recovery rate of outstanding power bills was less than half. An official representative of the Electricity Development Department (PDD) said that in the fiscal year 2022-2023, only Rs 3,652 crore was collected from the sale of electricity to customers, despite the fact that the cost of power acquisition was Rs 9,886 crore.

The spokesman said that the only Union Territory in the nation where customers still get energy without meters is Jammu and Kashmir. In contrast, the places “saturated with smart meters” are reporting far lower loss rates and better power delivery.

The spokesman said, “Concerted efforts are underway to ensure a better power supply by converting the entire consumer base of Jammu and Kashmir to modern prepaid metering systems.”

Because of this, the spokesman said, it’s critical to understand that power is a service that has expenses associated with it at every turn, from production at the source to transmission and distribution at the end. Customers often know nothing about the intermediary steps or organizations involved in getting their power from the distribution agency. Precise measurement of power is crucial at every point in the supply chain to keep supply and demand in balance and preserve the industry’s financial stability. It’s important to note that, even with careful measurement at each of these phases, accurate accounting and measurement of power use at the consumer’s end are still difficult at J&K.

The spokeswoman said, “It is important to note that J&K has some of the lowest electricity tariffs in the nation for consumers to pay.”

According to him, installing a smart electricity meter may alleviate some of the pressure caused by skyrocketing energy costs and deal with the underlying problems that the distribution industry is facing. By enabling accurate invoicing based on real consumption, smart meters remove the possibility of receiving unexpectedly large bills as a result of mistakes. These instruments provide a quicker reaction time for power restoration since they can identify power outages rapidly. Consumers may adjust their consumption habits to reduce their power costs by monitoring their electricity use in almost real-time.

After commencing in 2022, the first phase is now complete, with 1.5 lakh smart meters installed in the cities of Jammu and Srinagar. In order to achieve 100% smart metering in J&K, the second phase, which covers 5.50 lakh smart meters, is now being implemented. The third phase, which includes the remaining 14 lakh smart meters, has already begun and is expected to be completed by 2026.

In order to ensure that customers are charged fairly, independent regulatory commissions, not discoms, set and approve the rates for the electricity tariffs that are charged to consumers. These commissions take into account a number of factors, including the cost of purchasing power from generating companies, transmission costs, staffing and maintenance costs, etc. The Joint Power Regulatory Commission (JERC), for instance, is in charge of setting the power pricing in J&K,” he said.

According to the official, this is shown by the alarmingly low metering ratio in J&K, where just 51% of clients are metered and, as a result, pay a flat fee.

He further revealed that customers continue to believe that since J&K has an abundance of water supplies, it is a Union Territory with excess electricity. In actuality, however, J&K’s only source of energy production is hydropower facilities, which have seasonal reliance and other drawbacks.

Only during the four to five months of the year when river water flow is at its highest can hydro power plants generate at full capacity; the remainder of the year, they produce less electricity.

In terms of numbers, UT-owned plants, primarily 900 MW Baglihar, 110 MW Lower Jhelum, and 110 MW Upper Sindh, contribute 1,140 MW of the 3,500 MW installed generation capacity currently in place. The remaining 2,300 MW is sourced from central sector plants, including Salal, Dul-Hasti, Uri, and Kishanganga.

Due to lower river levels during the winter, J&K’s power plants, both in the state and federal sectors, are only able to produce a maximum of 600 MW of electricity against their rated capacity of 3500 MW, the official said.

But given that J&K’s peak demand during the winter months may reach up to 3,200 MW, it is clear that hydroelectric power facilities are unable to provide the region’s entire electricity needs. So, thermal-based central generating stations (CGS) outside of J&K provide the remaining electricity needed throughout the winter.

Installation of smart meters

During the fiscal year 2022–2023 only Rs 3,652 crore was collected from the sale of electricity to users, despite the fact that the cost of purchasing power was Rs 9,886 crore.
Merely 51% of users in J&K have meters, meaning they are taxed on a flat-rate basis. This is an alarmingly low metering proportion.
Smart power meters are now being installed by Admn, which may assist solve the underlying problems ailing the distribution industry.

The installation of 1.5 lakh smart meters in the cities of Jammu and Srinagar marks the completion of the first phase, which began in 2022.
The third phase, which includes the remaining 14 lakh smart meters, has already begun and is expected to be completed by 2026. The second phase, which covers 5.50 lakh smart meters, is now being implemented.