Inefficiencies of Power Corps to control AT&C losses can't be passed on to J&K consumers: JERC

Srinagar, Nov 29: In a stern move, the Joint Electricity Regulatory Commission (JERC) of Jammu and Kashmir has taken a decisive stance against the Kashmir Power Development Corporation Limited (KPDCL) and

Jammu Power Development Corporation Limited (JPDCL) for their apparent failure to address and curb Aggregate Technical and Commercial (AT&C) losses.

The regulatory commission has unequivocally asserted that inefficiencies within the power sector cannot be passed on to the consumers of J&K.

The JERC has made these observations in the approved tariff plan in which the commission states that J&K's Power Department was supposed to reduce AT&C losses to 15 percent by Financial Year 2019-20.
“AT&C loss reduction trajectory up to 15 percent by FY 2019-20 was fixed by erstwhile JKSERC for the turnaround of the power sector under the UDAY scheme. Further, a similar target of AT&C loss reduction has been envisaged under the Ministry of Power scheme: Revamped Reforms-based and Results-linked, Distribution Sector Scheme (RDSS). The commission considers the distribution loss level for FY 2023-24 as approved by MoP under the RDSS scheme for JPDCl and KPDCL,” the regulatory commission said. “Distribution loss is a controllable parameter; the petitioners (KPDCL, JPDCL) should take immediate action to curb the high losses observed in their area of supply. The actual losses cannot be considered and inefficiencies cannot be passed on to consumers.”

The erstwhile Jammu & Kashmir State Electricity Regulatory Commission (J&K SERC) constituted under the J&K Electricity Act 2010 carried out regulatory functions in respect of the erstwhile state of Jammu and Kashmir.

J&K Electricity Act 2010 was repealed, and the Electricity Act 2003 was made applicable to J&K and Ladakh by which Joint Electricity Regulatory Commission for the Union Territories of J&K and Ladakh (hereinafter called the 'JERC J&K and Ladakh' or 'the Commission') was established under Section 83 of the Electricity Act, 2003 by the Government of India.

J&K’s Aggregate Technical and Commercial (AT&C) power losses remain remarkably high, exceeding 50 percent, making them the highest among all states and Union Territories in the country.
According to official data, the AT&C losses of the J&K Power Department rank among the highest nationally, with the current losses estimated at around 50 percent, in stark contrast to the national average of 19.73 percent.

These substantial losses contribute to a significant gap between the cost of power purchase and revenue realisation.
Officials said that the AT&C losses encompass technical losses, primarily occurring due to transformation losses at various levels and high losses on distribution lines resulting from inherent resistance and poor power factor in the electrical network.

Additionally, commercial losses stem from illegal consumption of electrical energy that is not accurately metered, billed, and revenue collected, leading to financial setbacks for the utilities.
These commercial losses are a consequence of meter discrepancies, theft through direct hooking, and inefficiencies in revenue collection processes.

The existence of long low-tension (LT) lines transporting electricity to remote and dispersed households across mountainous terrain contributes significantly to electricity loss through I2R loss, ultimately leading to the high cost of power supply in J&K.