Proposal for Free Electricity to Employees of JKPDD Service providers like Electrical Utilities, Telecom Operators, Airlines, Railways,

Health etc generally provide their employees free services or services at concessional rates when the employees are in need of such services which the employer offers to its consumers against cost. This gesture infuses sense of belonging and ownership in the minds of employees and they tend to be loyal and work for the employer with better degree of zeal and enthusiasm. J&K Power Development is engaged in transmission and distribution of electricity in the State of Jammu and Kashmir. The Department has an employee base of 21748 Nos comprising of 870 Nos Gazted Officers, 14759 No. Non-Gazted Officers other than Class IV and 6119 Class-IV Employees. It is proposed that employees of the Department may be provided free electricity on the pattern of Punjab Electricity Company. The section (X) of Supply of Electricity to Employees Regulation for employees of Punjab Electricity Supply Company is enclosed as Annexure-A. As per clause 153.1 of above regulation Punjab Electricity Company is providing free electricity to its employees in the following manner. i). Pay upto Rs. 6000 : 100 units per month ii). Pay exceeding Rs. 6000 but not exceeding Rs. 10500 : 125 units per month. iii). Pay exceeding Rs.10500 : 155 units per month. Since most of the areas of Kashmir , Ladakh and Jammu are snow bound, the electricity consumption in these areas is high during harsh winters when the temperature remains at sub zero level and people need electricity for water heating / room heating etc. so the no. of free units have been taken as 200,175 and 150 against Punjab Electric Supply Company which offers 100,125,155 units respectively. Even in Punjab the consumption has been taken more during winter months for Shanan/ Jogindar Nagar / Brot which is 200,250,300 units per month. May refer clause 153.6 of above regulation in this regard.

Financial Implications:
The category wise employee base of Power Development Department is as under: 1. Gazteed: 2. Non-Gazteed: 3. Class-IV: 870 14759 6119

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The annual financial implication on account of free electricity to employees of Department is Rs. 978.72 lacs which is worked out as under:
Category No. of Employee (No.) 870 14759 6119 21748 Free Units (KWH) Average tariff (Rs. per Unit) 1.82 1.82 1.82 Electricity Duty (Rs.) 0.40 0.40 0.40 Monthly Financial Implication (Rs. in lacs) 3.86 57.33 20.37 Yearly Financial Implication (Rs.in lacs) 46.32 687.96 244.44 978.72

Gazteed NonGazteed Class-IV Total

200 175 150

The loss of revenue on this account is expected to be far less given the fact that actual recovery in domestic category is around Rs. 250 per consumer per month only.

In the recent past PDD employees have shown remarkable performance. Given below is the growth of Revenue Viz-a-Viz Energy input and tariff hike. It clearly shows employees are on improvement path and deserve some incentive from the government. This is right time to introduce free electricity scheme to the PDD Employees by the government. This gesture will certainly pave way for further improvements:
Description 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 ending Jan,13 9576 5.97 3.86

Energy Input (MU) Growth %age Average Tariff (Rs. Unit) Growth %age Revenue(Rs. Cr) Growth %age

8743 6.15 2.46

9147 4.62 2.46

10370 13.37 2.70

10667 2.86 2.70

11115 4.19 3.64

66.66 693.24 52.20

-2.85 71737.51 6.38

1.68 823.53 11.66

Nil 950.40 15.40

10.27 1200.14 26.27

6.04 1150.72 38.04

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Unlike other Transmission and distribution utilities in the country, the PDD employees are not being provided any transport or communication allowance. The nature of Operation and Maintenance (O&M) or construction or enforcement or coordination job is such that it is heavily dependent on these two facilities, especially O&M, which is a 24X7 duty. It is pathetic that most of the employees are meeting these expenses out of their salaries. In view of this fact also it is high time that incentive in the shape of free electricity units is introduced at right earnest.

Legal Frame Work

Government is vested with powers under Section 59 of J&K Electricity Act, 2010 for providing subsidy to a consumer or a class of consumers with concurrence of the Commission. The Section 59 is reproduced as under: If the Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the Commission under section 56, the Government shall, notwithstanding any direction which may be given under section 84, pay, in advance and in such manner as may be specified, the amount to compensate the person affected by the grant of subsidy in the manner the Commission may direct, as a condition for the licensee or any other person concerned to implement the subsidy provided for by the Government : Provided that no such direction of the Government shall be operative if the payment is not made in accordance with the provisions contained in this section and the tariff fixed by the Commission shall be applicable from the date of issue of orders by the Commission in this regard.

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