Chandigarh Electricity Department Reports Massive Rs 700 Crore Losses in Regulatory Hearing
The Chandigarh administration has revealed staggering financial losses in its electricity operations during a crucial regulatory hearing. In submissions to the Joint Electricity Regulatory Commission (JERC), officials disclosed cumulative losses approaching Rs 700 crore over the past two years and ten months, raising serious questions about the financial health of the Union Territory's power distribution system.
Financial Disclosures Show Escalating Revenue Gaps
During the public hearing held at Hall of Art & Culture College in Sector 10, Chandigarh, the administration submitted comprehensive 'True-up' petitions covering financial years 2022-23, 2023-24, and 2024-25. The documents presented under the chairmanship of JERC Chairman Alok Tondon revealed a troubling pattern of escalating revenue deficits.
The electricity department calculated the revenue gap extending to January 1, 2025, incorporating figures from previous fiscal years. The closing cumulative revenue gap stood at Rs 179 crore for FY 2022-23, which ballooned to Rs 426 crore in FY 2023-24, and reached a concerning Rs 692 crore in FY 2024-25.
Citizen Groups Challenge Billing Accuracy Practices
The hearing became particularly contentious when representatives from the Indian Citizens Forum (ICF) raised significant concerns about billing practices. S K Nayar, President of ICF, and Narinder Sharma, Secretary, highlighted what they described as systematic inaccuracies in electricity billing affecting all consumer categories except domestic users.
"The current billing methodology creates fundamental inaccuracies that disadvantage consumers," Nayar asserted during the proceedings. "While JERC has mandated KVAh-based billing for all LT categories except domestic consumers effective November 1, 2025, the reality is that most installed meters don't record KVAh readings."
The forum representatives explained that Chandigarh Power Distribution Ltd (CPDL) has resorted to converting KWH readings to KVAh using a fixed power factor of 0.85, a practice they argue fails to reflect actual consumption patterns accurately. This conversion methodology, according to the citizens' group, results in inaccurate bills that consumers are compelled to pay despite potential discrepancies.
Utility's Response and Proposed Solutions
In response to these serious allegations, a CPDL spokesperson addressed the concerns during the hearing. The utility acknowledged the current limitations but defended its practices as necessary interim measures.
"The chairperson clarified that until all meters are replaced with KVAh-enabled smart meters, normative conversion will continue," the spokesperson stated. "CPDL has developed a comprehensive plan to address this infrastructure gap and proposes to replace all affected meters by March 2028."
The utility's timeline suggests a three-year transition period during which the current conversion methodology will remain in place, despite consumer concerns about billing accuracy.
Broader Implications for Power Distribution
This hearing has brought to light multiple challenges facing Chandigarh's electricity sector:
- Significant financial losses exceeding Rs 700 crore over nearly three years
- Technical infrastructure gaps preventing accurate KVAh-based billing
- Consumer concerns about billing transparency and accuracy
- The need for substantial infrastructure investment in smart meter technology
The JERC hearing represents a critical moment for Chandigarh's power sector, highlighting both financial vulnerabilities and operational challenges that require urgent attention from regulators, utility officials, and consumer advocates alike.
