The reduction in Aggregate Technical and Commercial (AT&C) losses and the highest revenue generation in Jammu & Kashmir’s power sector marks a major turnaround in this long-struggling sector. This progress, despite coming with severe implementational challenges, could be seen as a major institutional reform in J&K, which, besides triggering similar reforms aimed at greater governance efficiency, is a first good step towards energy efficiency and economic stability in this former state. However, much more work lies ahead in making good quality and reliable power supply available to domestic consumers, businesses, industries farmers in J&K.
The reduction of AT&C losses from 51% in 2022-23 to 40% in 2023-24 is a good beginning. This 11% decrease, although still small in comparison to the total AT&T losses, has to be only the stepping stone towards achieving more efficient power supply system in J&K, still struggling with low and unreliable supply. The narrowing of the gap between the Average Cost of Supply (ACS) and Average Revenue Realised (ARR) from Rs 2.44/kWh to Rs 2.18/kWh could, again, be seen as a good beginning.
The comprehensive reforms in J&K’s power sector have encompassed a broad spectrum of initiatives, including the installation of smart meters, implementation of the Revamped Distribution Sector Scheme (RDSS), and rigorous enforcement measures against power theft.
The completion of the first phase of smart metering under the Prime Minister’s Development Package (PMDP) and the ongoing work on phase two signify a significant stride towards modernizing the power infrastructure. With 4,48,931 out of 5,57,994 meters already installed, and 310 feeders saturated with smart meters, there is a tangible improvement in reducing AT&C losses.
One of the most notable outcomes of the power sector reform efforts is the highest ever revenue realization for the quarter April-June 2024. This achievement is being seen as a direct result of rigorous enforcement measures, including 18,199 disconnections and the regularization of 6,152 connections through 78,811 inspections across the UT. The crackdown on power theft has played a crucial role in this financial turnaround.
However, maintaining this momentum is crucial for J&K’s continued economic development. The ongoing reforms and initiatives need to be sustained and scaled up to ensure that the benefits are long-lasting and widespread for the common people. To make good quality and affordable power available to common masses, more people-friendly reform is required.
Projects such as LT cable replacement, HT line cabling, and the high voltage distribution system (HVDS) must be completed without delay. These upgrades are essential for minimizing technical losses and improving the overall reliability of the power supply. However, to make these measures work in the long run what is required is a robust system of system monitoring and maintenance. Without proper maintenance this complex infrastructure could be rendered ineffective in the long run, adding further financial burden for the state and the common masses.
Towards this, effective collaboration with implementing agencies like JPDCL, KPDCL, PESL, and NTPC is vital. Coordinated efforts will ensure that infrastructure is properly maintained, projects are executed seamlessly and that any bottlenecks are promptly addressed.
Despite being unpopular among certain sections of the population, continuous enforcement against power theft and stringent legal actions against defaulters are imperative. The establishment of accountability within the PDD will ensure that the gains achieved are not eroded by laxity or inefficiency.
What is also very important is to raise awareness about the benefits of cutting losses in J&K’s power sector, and how these measures could lead to better revenue for the state and improved services and quality of life for the masses. Consumer cooperation is critical for achieving a 100% efficiency in J&K’s power sector. For that it is crucial to improve power supply to consumers in J&K, especially in harsh weather conditions, and reduce the frequency of power cuts to an acceptable level. By maintaining this momentum and focusing on people-friendly reforms, J&K can continue to build a robust, efficient, and financially viable power sector, ensuring a brighter and more prosperous future for its residents.
