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HomeKashmirCheap Electricity but Crippling Load-Shedding in Pakistan-Administered Jammu & Kashmir

Cheap Electricity but Crippling Load-Shedding in Pakistan-Administered Jammu & Kashmir

Despite a remarkable reduction in electricity tariffs following the recent mass movement for civil rights in Pakistan-administered Jammu & Kashmir (PAJK), residents are now enduring unprecedented levels of load-shedding. The public movement had demanded not only electricity at production cost but also exemption from power cuts, the establishment of a local grid station, and the transfer of transmission responsibilities from Pakistan’s distribution companies to the local government.

However, while electricity prices were reduced, the remaining key demands remain unaddressed. Instead, power outages have increased several-fold, raising serious concerns about the region’s collapsing transmission and distribution system.

Department Claims Consumption Surge — But Official Budget Data Tells a Different Story

In a recent press release, the Electricity Department claimed that overall power consumption, which previously peaked at around 350 MW in extreme summer or winter months, has now surged to 570 MW — nearly 40% higher than historical usage.

The department further asserted that between May and October this year, 5,056 transformers burned out, allegedly due to excessive load on feeders, forcing upgrades costing 1.6 billion rupees.

The spokesperson once again appealed to consumers to “reduce usage,” blaming extensive use of air-conditioners and electric heaters (being used for cooking as well) for the surge in demand and the resulting strain on the system.

However, budget documents contradict these claims.

According to official records, after electricity tariffs were reduced last year, consumption increased from 354 MW to 427 MW, marking a 20% rise, not 40%.

For nearly two decades, the region’s electricity demand had remained stagnant because citizens increasingly shifted to alternative energy sources due to high prices. A 20% rise, therefore, is significant but nowhere near the department’s public claims.

Revenue Collection Claims Also Disputed

The department accused residents of failing to deposit electricity bills and claimed no improvement in revenue collection. Yet, official budget documents again challenge this narrative.

Before tariff reductions, PAJK paid 5.2 billion rupees to WAPDA for electricity. Last fiscal year, the government paid around 7 billion rupees for power purchases.

Revenue Collected Through Electricity Sales:

  • 2022–23: 20 billion rupees collected

  • 2023–24 Target: 25 billion rupees

  • Actual 2023–24 Collection: 15 billion rupees (due to bill boycott movement)

Even with drastically reduced tariffs —
3–6 rupees per unit for domestic and 10–25 rupees for commercial users — the department purchased electricity worth 7 billion rupees and sold it for 15 billion rupees.

This indicates a decline of only 25% in revenue despite prices falling by more than half, which disproves the department’s claim of “no improvement” in bill collection.

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Government data further shows that PAJK earned 3 billion rupees in profit from electricity this year alone.

A Crumbling Transmission System Exposed

Experts say the real crisis is not increased consumption but the severely outdated and neglected transmission network.

Power transmission systems require a built-in capacity margin to handle seasonal demand spikes:

  • Transmission lines: 20–25% extra capacity

  • Distribution system: 25–30% extra capacity

  • Grid stations: at least 20% reserve margin

For a region with an average requirement of 354 MW, its system should comfortably handle 450 MW.
The fact that even a 20% increase caused thousands of transformers to fail highlights decades of neglect.

Instead of acknowledging this structural collapse, the department has shifted the blame onto consumers, who are using — for the first time in years — an amount of electricity closer to their actual needs.

The Mangla Paradox: Local Power Sent to Islamabad Before Returning to Kashmir

One of the most controversial aspects of electricity supply in PAJK is the way power generated from Mangla Dam and other local hydel projects is routed:

  1. Electricity is first sent to Pakistan’s national grid in Islamabad.

  2. From there, it travels through Punjab and Khyber Pakhtunkhwa.

  3. It is then sent back to PAJK via Pakistani distribution companies.

For decades, these companies have received 108 billion rupees annually under “tariff differential subsidy” for this back-and-forth transmission.
For the coming fiscal year, 74 billion rupees have again been allocated under this category.

Civil rights groups argue this circular transmission model is deliberately maintained to justify massive subsidies and potential corruption within distribution companies and bureaucratic networks.

Why a Local Grid Station Is Critical

Experts insist that with an investment of just 3–5 billion rupees, the transmission infrastructure in PAJK can be upgraded enough to:

  • Establish a local grid station in Muzaffarabad or Mirpur

  • Route local hydel power directly to PAJK consumers

  • Supply excess electricity to the national grid afterward

  • Eliminate unnecessary long-distance transmission losses

  • End the subsidy-driven loopholes benefiting powerful lobbies

Such a model would not only end load-shedding but also provide stable, low-cost power to households and local businesses.

The Bigger Picture: A System Rotting for Decades

The current crisis exposes long-term structural decay:

  • No modernization of transformers or feeders

  • No expansion of grid capacity

  • No long-term planning for rising demand

  • No investment in underground or modern transmission systems

Experts argue that while comprehensive reform — including planned housing, underground lines, and modern distribution — is urgently needed, even minor investments in transformers, feeders, and grid maintenance can ensure cheap and uninterrupted electricity.

Yet, the department appears unwilling to acknowledge its own failure, preferring instead to blame ordinary citizens for using electricity after decades of deprivation.

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