J&K cuts power losses, but still far from national benchmark

Srinagar, July 19: Jammu and Kashmir's power sector continues to face significant challenges as its Aggregate Technical and Commercial (AT&C) losses remain among the highest in India, despite recent improvements.

According to the latest data, AT&C losses in J&K have decreased from 63% in 2021-22 to 44% in 2023-24. However, this figure still far exceeds the national average of approximately 15%.

"The AT&C losses of the J&K Power Department are one of the highest in the country. The present AT&C losses are of the order of 44 per cent against the national average of 15.9 per cent. Due to these losses, the gap between power purchase cost and revenue realisation is huge," said a senior Power department official.

AT&C losses encompass both technical losses due to infrastructure limitations and commercial losses resulting from billing errors, theft, and non-payment. The high losses in J&K are attributed to several factors, including the challenging terrain of the UT.

"Due to the existence of long LT lines carrying electricity to distant and scattered households over the mountaintop, a substantial quantum of electricity is lost at I2R loss leading to the high cost of power supply in J&K."

The financial impact of these losses is severe. Official estimates indicate that J&K loses around Rs 5000 crore annually due to revenue shortfalls and distribution costs.

To address this issue, the power distribution companies (Discoms) in J&K are implementing various measures. These include intensifying enforcement activities to check pilferage and prosecute defaulters under the Electricity Act 2003, implementing technological interventions such as smart metering and AB cabling, and rationalizing load in unmetered areas.

The Joint Electricity Regulatory Commission (JERC) of Jammu and Kashmir in a recent observation of the tariff plan has taken a firm stance against the Kashmir Power Development Corporation Limited (KPDCL) and Jammu Power Development Corporation Limited (JPDCL) for their apparent failure to curb AT&C losses effectively. The JERC has emphasised that inefficiencies in the power sector cannot be passed on to consumers.

In its approved tariff plan, the JERC stated, "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)."

"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."

Officials from KPDCL acknowledge the need for improvement. One senior official noted, "Although AT&C losses have decreased over the past 10 years, they are still on the higher side, much to the administration's pain. The quality of the power supply will significantly improve once AT&C losses are comparable to the national average."