J-K Faces Electricity Bill Hike Following 500 MW Power Agreement

J-K Faces Electricity Bill Hike Following 500 MW Power Agreement

J-K Faces Electricity Bill Hike Following 500 MW Power Agreement

On Wednesday, authorities announced that the recent agreement to purchase 500 MW of thermal power is anticipated to lead to a one-rupee per unit hike in the tariff when compared to the current hydropower rates.

H Rajesh Prasad, the Principal Secretary of the Power Development Department (PDD), disclosed that the initiation of the process to harness the newly acquired 500 MW of thermal power would commence shortly. Recognizing the region’s heavy dependence on hydropower, Prasad highlighted an existing solar power purchase agreement for 1600 MW, surpassing the capacity of hydropower. He projected that by December 2024, Jammu and Kashmir (JK) would integrate solar power into its energy mix. Despite the acknowledged limitations of solar energy due to weather variability, Prasad underscored the advantages of thermal electricity generation, particularly using coal or gas, ensuring a consistent 24-hour power supply.

Confirming government approval for the 500 MW power purchase agreement, Prasad delved into the expected tariff adjustment. He indicated that the base rate for thermal power would likely be slightly higher than that of hydropower and solar power, potentially increasing from the current rate of Rs 4.50 paisa per unit to Rs 5.25 paisa or Rs 5.50 paisa. Despite the projected increase, Prasad deemed it a reasonable rate essential to support the base load.Addressing the procurement of power, Prasad discussed ongoing purchases from the power exchange, likening its volatility to the share market.

He assured that the Power Development Department holds sufficient power purchase agreements to fulfill the base load requirements.While acknowledging the approval for the 500 MW thermal power purchase, Prasad pointed out the necessity for central electricity authority procedures to finalize price approval, expecting completion within 2-3 days.

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