40 per cent flat rate consumers contributing to high AT&C losses: Govt

Jammu, Mar 13: The Jammu and Kashmir government on Wednesday said that electricity bills are being issued based on actual consumption for metered consumers while bills are being issued as per JERC tariff to non-metered consumers.
Replying to a question of MLA Tanveer Sadiq, the Minister for PDD said that no, it is not a fact that consumers have been served with excessive electricity bills causing financial distress. “The Discoms issue bills based on the actual electricity consumption for metered consumers, in line with the tariff order issued by the Joint Electricity Regulatory Commission (JERC). Un-metered or flat-rate consumers are also billed according to the JERC tariff. In case of any complaint with regards to billing, the consumers can lodge grievances, which are redressed based on the merits of the case,” he said.
“J&K has taken concrete steps to improve its metering percentage. Currently only 60% of consumers are metered, the rest of the consumers are being charged on a flat rate basis, contributing to high AT&C losses. To reduce losses in un-metered (Flat Rate) areas, Discoms are conducting calibrated load rationalization based on actual electricity usage and connected loads, ensuring compliance with Electricity Supply Code regulations,” he added.
“To address the metering issue, the smart metering programme is under implementation in mission mode with around 7.0 lac smart meters already installed out of the total consumer base of 22.4 lacs and 100% smart prepaid metering is targeted to be achieved by 2025-26 under ongoing RDSS scheme,” he said.
“It is needless to mention that smart meters provide precise and accurate measurement of electricity while also eliminating any possible human errors associated with manual meter reading,” he added.
“No, it is not a fact that economic uncertainty or sluggishness is causing a majority of consumers to be unable to pay their bills, resulting in huge outstanding debts. J&K offers one of the lowest tariff rates to its consumers in various categories, underscoring its commitment to providing affordable electricity to its residents. The department has taken concrete steps to streamline the billing and collection systems. These efforts have focused on improving billing accuracy and raising awareness among consumers regarding any doubts or issues related to their bills. As a result, billing and collection efficiencies have improved significantly, leading to a reduction in AT&C losses from 62% in 2020-21 to 40% in 2023-24. This indicates that aware consumers tend to pay their bills on time, and there is no economic uncertainty or sluggishness affecting payments,” the Minister said.
“DISCOMS regularly encourage consumers to clear their outstanding dues on time to avoid interest and surcharges. Smart metering has played a significant role in such improvements to the billing and collection systems. In areas where smart metering has been implemented, consumers are more aware of their electricity consumption, and many are now focusing on conserving energy and avoiding wastage, which is crucial in the current energy shortage scenario. Initially met with scepticism, the smart metering program has gained widespread acceptance, with many consumers voluntarily opting for smart meters due to their various features. For consumers who don’t pay their bills on time, DISCOMS take action in accordance with the Electricity Supply Code regulations,” he said.
“To further assist consumers, the Government has launched an Amnesty Scheme for domestic consumers. This scheme waives interest and surcharges on outstanding bills that have accumulated due to non-payments in the past, with the condition that current bills must be paid regularly. The Amnesty Scheme, available until 31.03.2025, has provided significant relief to various sections of society and helped streamline the billing system,” he added.
“Since the amnesty scheme launched in the year 2022 vide Government order No. 103-PDD of 2022 dated 12.09.2022 is specifically designed to help the domestic consumers which are still in force up to 31.03.2025, as such there is no need to issue fresh amnesty for the purpose,” he said.