Union Power Ministry asks JERC for UTs of J&K, Ladakh to submit Annual Report

Gap in revenue realization, A&TC losses to be reflected

Compliance level of Renewable Purchase Obligation too sought

Mohinder Verma

JAMMU, Jan 30: Union Power Ministry has directed the Joint Electricity Regulatory Commission (JERC) of the Union Territory of Jammu & Kashmir and Union Territory of Ladakh to submit Annual Report giving summary of its activities during the previous year and highlighting the gap in the revenue realization, level of Aggregate Technical and Commercial (AT&C) losses and compliance level of Renewable Energy Purchase Obligation.
In order to ensure that Annual Report is received after every year the Union Power Ministry, in exercise of the powers conferred by Section 176 of the Electricity Act, 2003 and in pursuance of Section 83 of the Act, has made the Joint Electricity Regulatory Commission for the Union Territory of Jammu & Kashmir and Union Territory of Ladakh (Preparation of Annual Report) Rules, 2023, which have come into force with immediate effect.
The Section 176 of the Electricity Act empowers the Central Government to make Rules for carrying out provisions of the Act by issuing formal notification while as Section 83 states that a Joint Commission may be constituted by the Central Government in respect of one or more Union Territories.
As per the Rules, the copy of which is available with EXCELSIOR, every year the Joint Electricity Regulatory Commission will prepare an Annual Report, giving a summary of its activities during the previous year commencing from the 1st day of April to the 31st day of March of the following year in the prescribed format.
The Annual Report will give an account of the activities during the previous financial year containing a statement of goals and objectives of the Joint Commission and annual targets set for various activities in view of the provisions of the Electricity Act, 2003 together with a brief review of actual performance with reference to those targets and including in particular a report on the number of cases filed before the Joint Commission during the year, number of cases disposed of, time taken to dispose of the cases and number of cases pending.
Further, the Joint Electricity Regulatory Commission will mention in the Annual Report important additions or changes in the Regulations of the Commission and the manner of functioning of the State Advisory Committees and other consultation with the stakeholders.
Most importantly, the Joint Commission will reveal the status of Average Cost of Supply, Average Revenue Realised gap and Aggregate Technical and Commercial losses and the steps proposed to reduce these. Further, the Annual Report will contain the trends of important parameters such as capital cost, cost of electricity, new investment and efficiency gains.
The Joint Commission has further been asked to highlight in the Annual Report the number and details of cases in which orders or Regulations of the Commission were challenged in Courts or Appellate Tribunal and the outcome of such cases and the resolution of disputes including the disputes pending at the end of the year.
Further, the Union Power Ministry has asked the Joint Commission to highlight any departure from the tariff being cost reflective, compliance with Section 65 of the Act for grant of subsidy, implementation of Open Access, compliance of Renewable Energy Purchase Obligation and any other provisions of the Act of 2003.
“The Annual Report shall contain the compliance of any direction given by the appropriate Government under relevant provisions of the Act”, read the Rules. The copies of the Annual Report will be forwarded by the Joint Electricity Regulatory Commission to the Central Government and to the Governments of the Union Territory of Jammu & Kashmir and Union Territory of Ladakh at the end of October in each year.