Revenue gap continuously increasing during past many years

JAMMU, May 15: Ladakh Power Development Department has proposed an average tariff hike of 14.66% during the current financial year keeping in view the continuously increasing revenue gap during the past many years. Moreover, the Aggregate Technical and Commercial (AT&C) and distribution losses are still on the higher side and a matter of concern for the administration of the Union Territory.

In a tariff petition filed before the Joint Electricity Regulatory Commission for the UTs of J&K and Ladakh, the Power Development Department of the Ladakh UT has mentioned that there was a gap of Rs 4223.28 crore between the aggregate revenue requirement and revenue available during the financial year 2019-20 and this gap increased to Rs 9079.20 crore during the financial year 2020-21 when Rs 5020.20 crore revenue was available against aggregate revenue requirement of Rs 14099.40 crore.

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The gap between aggregate revenue requirement and revenue available during the 2021-22 further increased to Rs 10513.67 crore.

To recover the revenue gap to some extent, the PDD has proposed an average tariff hike of 14.66% with the mention that projected revenue billed for financial year 2022-23 at proposed tariff is Rs 6539.19 lakh and the proposed tariff would lead to increase in revenue billed by Rs 7491.73 lakh.

At present, the PDD is charging Rs 1.69 per unit up to 100 units per month and Rs 2.20 per unit for units between 101 and 200 per month. However, it has proposed Rs 2 per unit for units up to 200 per month. Against Rs 3.30 per unit for units between 201 and 400 per month being charged at present, the PDD has proposed Rs 4 per unit for units between 201 and 400 while as against Rs 3.52 per unit for units more than 400 per month, the department has proposed Rs 5 per unit for units more than 400 per month in the tariff petition. Moreover, fixed charges have been proposed to be increased from Rs 5.50 per month to Rs 15 per month.

For different categories of un-metered consumers, the PDD has proposed hike from Rs 99 per month to Rs 200 per month, from Rs 325 per month to Rs 400 per month, from Rs 490 per month to Rs 600 per month and from Rs 650 per month to Rs 800 per month.

As far as non-domestic/commercial category of consumers are concerned, at present the tariff for units up to 100 per month is Rs 2.81 per unit and Rs 2.97 per unit for units between 101 and 200 per month. However, it has proposed Rs 3.50 per unit for units up to 200 per month. Similarly, it has proposed Rs 5 per unit for units between 201 and 500 per month as against Rs 2.97 per unit for units between 101 to 200 and Rs 4.29 per unit for units between 201 and 300 per month.

For units more than 300 per month, the PDD at present is charging Rs 4.62 per unit but for units more. However, no substantial hike has been proposed for State/Central Government departments. At present the PDD is charging Rs 6.88 per kWh for 11 KV supply and 33 KV supply and for the current financial year it has proposed Rs 6.90—just two paisa increase.

As per the figures mentioned in the tariff petition, the AT&C losses were 43.03% in 2019-20, 48.17% in 2020-21 and 49.04% in 2021-22 and the Department is planning to bring down the same to 42.90% during the current financial year.

The distribution losses were 42% in 2019-20, 39% in 2020-21 and 41% in 2021-22 and the Department is planning to bring down the same to 35% during the current financial year.