The Joint Electricity Regulatory Commission (JERC), overseeing the UT of Jammu and Kashmir and the UT of Ladakh, has expressed its apprehension to the Jammu and Kashmir Power Development Corporation (JKPDCL) concerning various aspects of the tariff petition. There are delineated procedures for presenting cases to the JERC for the review of power tariffs. However, the JKPDCL has not fulfilled its commitments on several fronts and hasn’t provided the requisite data mandated by the JERC. The absence of progress in negotiating PPAs with HEPs despite several years of elapsing is deeply troubling. It is of paramount importance to ascertain the purchase cost of electricity to gauge profitability or losses in the financial records. However, the accounts under various categories remain unaudited and, consequently, are not admissible by the JERC. This issue has been previously highlighted, but regrettably, no remedial measures have been undertaken.
Furthermore, the absence of project-specific particulars detailing the approved design energy and the actual energy production is a glaring deficiency. In the absence of these critical details, cumulative reports are rendered unacceptable to the JERC as the financial viability of certain projects cannot be ascertained. This laxity extends to the Renovation, Modernization, and Upgrading (RMU) Programme and Repairs and Maintenance (R&M) efforts. Enormous sums have been expended on various HEPs with minimally discernible outcomes. Many DPRs remain pending approval at various stages. With a staggering liability of 31,000 crores pending with various power disbursements and clear indications from the Central Government about the unavailability of further grants, the situation is becoming increasingly dire, with the public enduring protracted power outages. JKPDCL appears incapable of effectively presenting its case for a power tariff hike and is equally ineffective in reducing its substantial AT&C losses. Those entrusted with leadership roles within JKPDCL must promptly address the escalating situation. The manifest shortcomings across several facets of the corporation are too conspicuous to be disregarded.
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