No tariff hike, only calibrated load revision in non-metered areas: MD KPDCL

Srinagar, July 24: The Kashmir Power Development Corporation Limited (KPDCL) has addressed recent media reports about alleged electricity tariff hikes, stating that no such increase had been implemented for non-metered consumers in the current financial year.

Addressing a news conference here today, the Managing Director of KPDCL, Mussarat ul Islam emphasised that only the Joint Electricity Regulatory Commission (JERC) for Jammu and Kashmir and Ladakh was authorised to revise electricity tariffs.

He addressed several critical issues facing Kashmir’s power sector.

The MD KPDCL emphasised that providing 24x7 electricity was currently impossible due to widespread illegal hooking and power theft, particularly in metered areas.

He sought to clarify that tariff slabs remain unchanged for the ongoing fiscal year, with no immediate plans for rate revisions.

Mussarat said that there was confusion between load revision and tariff hikes.

He said that the ongoing exercise by KPDCL involves revising load agreements for consumers, particularly in flat-rated areas, based on actual consumption patterns.

According to the MD KPDCL, about 68 percent of their 11.82 lakh consumers were in non-metered areas.

“The corporation has been conducting surveys and assessments, finding instances where the agreed load is significantly lower than actual consumption. For example, some consumers with agreements for 0.5 to 1 kilowatt are consuming 7 to 8 kilowatts.”

The MD said that KPDCL was using a “calibrated approach” for load revision, focusing particularly on high-value consumers in flat-rated areas.

“This involves door-to-door inspections and physical assessments of electrical load,” he said.

Mussarat said, “There isn’t any steep hike. Our directions are to have a calibrated approach by which we will enhance the load of the consumer after proper assessment.”

He said that KPDCL was also undertaking a significant smart metering initiative.

“We have set a target of installing smart meters for 3.39 lakh domestic consumers under the PMDP scheme, with nearly 3 lakh installations already completed. Under the Revamped Distribution Sector Scheme (RDSS), the corporation plans to install smart meters for the remaining 6.85 lakh domestic consumers, including those in flat-rated areas, over the next 27 months,” the MD KPDCL said.

He said that the smart metering system was expected to increase billing efficiency, reduce manual interventions, and provide consumers with more control over their electricity usage and payments and consumers with smart meters can use the BillzWallet app for convenient bill payments.

“In addition to smart metering, KPDCL is implementing loss reduction measures, including the replacement of bare conductors with aerial bunch insulated cables to prevent power theft. The corporation is also upgrading infrastructure with steel tubular poles, DP substations, and installing meters on distribution transformers and feeders for detailed energy accounting,” Mussarat said.

He addressed concerns about the 15 percent tariff hike announced in December of the previous financial year, clarifying that it was nullified for metered areas due to an exemption in electricity duty.

“The hike was only applicable to non-metered areas,” the MD KPDCL said.

KPDCL officials, including Chief Engineer Distribution Sandeep Seth and Superintendent Engineer Circle 2 were present at the news conference to provide additional details on the ongoing initiatives and the corporation’s plans.