Govt starts working to set up AJK Disco

ISLAMABAD: The government has initiated working on its plan to create Azad Jammu and Kashmir electricity distribution company (AJK Disco).

However, the analogy of the AJK Disco will be as a bulk consumer that will purchase the electricity from three Discos of the country such as Iesco, Pesco and Gepco.

AJK DISCO will go into the jurisdiction of Nepra and the regulator will determine the tariff and this is how the AJK electricity distribution will come under rules and regulations of Nepra. The government has initiated its working on making AJK Disco in the light of the decision taken by ECC that met in March 2019.

Ministry of Energy (Power) is in touch with AJK electricity department with regard to making AJK Disco,’ a well-placed senior official told The News.

“The electricity tariff for AJK currently stands at Rs5.79 per unit which is a subsidized one if compared with the tariffs of all Discos in the country. The earlier tariff was at Rs2.59 which was jacked up to the existing one which is at Rs5.79 per unit.”

The AJK Disco like other Discos in the country will be able to submit its petition with Nepra seeking its tariff.

In line with the spirit of equality, the government has already increased the water usage charges (WUC) to Rs1.10 per unit electricity for Azad Jammu Kashmir (AJK) from Rs0.15 per unit to bring it at par with other provinces of KP and Punjab which are being provided Net Hydel profit of Rs1.10 per unit in the tariff of hydro generation.

The AJK government was demanding WUC on Mangla dam at the rate of Rs1.10 per unit at par with Punjab and KP on Tarbela Dam and Ghazi Brotha Hydropower Project respectively.

However, the challenge for AJK DISCO will be how to bar the three DISCOs (Peshawar Electric Supply Company (Pesco), Islamabad Electric Supply Company (Iesco), and Gujranwala Electric Power Company (Gepco) from parking their losses in the head of the electricity that is to be provided to AJK, as the said three Discos are found to be used to park major chunk of their losses in the head of AJK. The said three companies provide the electricity to the whole AJK, out of which Pesco alone provides 60-70 percent electricity.

The combined feeder in Pesco that is responsible to provide electricity to AJK and KP, but Pesco administration always shows the huge losses of 37 percent in the head of AJK. And the same case is also with Iesco and Gepco.