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J&K PDD lacks in billing and collection efficiency causing losses

Last Updated on August 5, 2021 at 6:03 pm

A report published by the NITI Aayog titled ‘Turning Around The Power Distribution Sector-Learnings and Best Practices from Reforms’, Power Development Department (PDD) of Jammu and Kashmir has been on list of bad performers.

PDD has the lowest billing efficiency of 61 per cent, while the Collection Efficiency has been given out as 82 per cent. There is an urgent need to improve both the parameters.

The analysis of the performance has been carried out for the financial year 2019.

During the year 2015-16, the profit has been identified as minus 4,278 cr, for the year 2016-17 it is minus 4,063 cr, for the year 2017-18, minus 2,999 cr, and for the financial year, 2018-19, the profit has been stated as minus 2,902 cr. The overall Average Cost of Service (ACS) and Average Revenue Realisation (ARR) gap has been given out in the report for J&K is Rs 3.09 which is the highest in the country followed by Arunachal Pradesh and Nagaland.

In the report it has been stated that billing efficiency needs to be improved through better metering.

For collection efficiency, the report stated that Discoms should target 100 per cent collection efficiency and theft can be reduced through action by the discom and the State.

Also in the report it is mentioned that technical losses should be reduced and is advised that Discoms may reduce their technical losses through investment by improving their grid, including upgrading conductors, high-tension lines, and right-sizing transformers, and through the implementation of appropriate monitoring technologies. Also customer relations should be improved by providing convenient bill payment facilities, accurate billing and easy accessible call centres.