By: Riyaz Bhat
Srinagar: Jammu and Kashmir facing an excessive gap of more than 15 percent between the power requirement and actual power available for its consumers.
According to the official documents, “The gap between power requirement and actual power available is quite high at about 14-16 percent approximately in J&K.”
The officials said that the issue primarily occurs due to drop in generation of hydel power plants during winters as a result of reduction in flow of water in the snow fed rivers of J&K.
“In order to mitigate the shortfall in power requirement during the winter months, bilateral arrangements are executed with other states which have surplus power during winters and need power from J&K during summers,” reads the documents.
The government in a report has said that besides, unallocated power is also obtained from the Ministry of Power from the quota of power allocated to NE and Western States.
“Electric power reaches the consumer through the transmission and distribution network where there are T&D losses as well as commercial losses. Such losses in J&K are substantial and efforts are being made to reduce these by way of system improvement and conducting enforcement drives against power theft,” it reads.
According to the documents, the revenue collection efficiency and billing efficiency has improved to 81 percent ending November 2024.
“This has resulted in a reduction of AT&C losses to 18.82 percent— indicating reduction in power loss and enhancing the efficiency of the electricity supply system,” officials said.
It also said that the consumer landscape in J&K is predominantly residential, comprising 84 percent of the consumer base, followed by commercial users at 13 percent.
“The remainder includes agricultural, industrial, and governmental sectors, each contributing to the diverse energy consumption patterns and infrastructure needs across the region,” it reads. (KNO)
Power supply cost outpaces revenue: CM
The government Friday said it was facing a major gap between the cost of power supply and revenue collection saying that it recovers only 35 percent of average cost per unit.
Chief Minister Omar Abdullah in his Budget 2025-26 speech said, “One of the key challenges we face is the gap between the cost of power supply and revenue collection.”
Omar said,” While the average cost per unit is Rs 7, we recover only Rs 2.5 due to systemic inefficiencies, high losses, and low tariffs. To bridge this gap, our government is implementing 100 percent smart metering, strengthening billing and collection mechanisms, and modernizing the entire distribution network.”
He further said that such measures will enhance efficiency, reduce commercial losses, and improve revenue realization.
Pertinently, the government announced that for the Power Sector an allocation of about Rs 2021.37crore has been made under capital expenditure for the year 2025-26 which is Rs 762.80 crore more than the revised allocation of 2024-25.
Omar further said, “Our goal is to bring down Aggregate Technical and Commercial (AT&C) losses from 41 percent to 25 percent by 2025-26, ensuring a financially sustainable power sector.”
On the occasion, the CM proposes free 200 units of electricity for AAY families.
“To provide financial relief and energy security to the most vulnerable, I propose to provide 200 units of free electricity per month to all Antyodaya families in Jammu & Kashmir,” he said.
The CM further said that integration with the PM Surya Ghar Bijli Yojana will enable the installation of grid- connected solar systems, generating the required power and eliminating electricity bills,”
“With an investment of Rs 750 crore spread over five years, this step will also reduce AT&C losses and promote sustainable energy. I urge this august House to support this transformative move towards a greener, more inclusive, and self-reliant Jammu & Kashmir,” he said.
In the meantime Omar further said that the high AT&C losses has resulted in huge outstanding liabilities for power purchase.
“High AT&C losses resulted in huge outstanding liabilities for power purchase, for which Rs 28,000 crore were borrowed in the last few years, raising public debt from 48 percent of GSDP in FY 2015-16 to 52 percent in 2023-24,” the CM said.
He said that in order to mitigate the issue, the government was reducing high-cost debt, optimizing liabilities, and calibrating the repayment schedules for long-term fiscal stability. (KNO)
