AJK imports electricity from different electricity distribution companies of Pakistan. The rate at which they sell electricity to AJK is Rs 11.24 per unit (as of June 2016) while these companies charge their own consumers up to Rs 15 per unit.
However, AJK government does not actually pay this Rs 11.24 per unit rate. It pays Only Rs 2.59 per unit, while the remaining portion of the rate is paid by the Government of Pakistan to electricity companies as subsidy to AJK.
But in actuality, the AJK Govt does not regularly pay even this Rs 2.59 per unit rate and at the moment it has outstanding payments of Rs 65 billion to the electricity companies. This has been going on for decades.
Now what rate is charged to consumers in AJK and how much is collected from them is decided by AJK electricity department. But one of the major reasons of load shedding in AJK is non-payment to these electricity companies.