Phasing out gas supply for captive power plants and shifting industries by early 2025 reflects a well-considered initiative by the government. This step, in line with the Cabinet Committee on Energy’s January 2021 decision, is poised to strengthen both the economy and the power sector.
Transitioning captive users to the grid is vital for several reasons. It will help dilute fixed capacity charges to a significant extent and ultimately lower power tariffs. Currently, declining demand has caused capacity costs to surge per unit, impacting consumers with high electricity prices. Shifting industries to the grid will ease this burden, leading to more affordable electricity for all.
Additionally, the recent winter support package announced by Prime Minister Shehbaz Sharif aims to reduce electricity costs for industries and commercial consumers through discounted rates from December 2024 to February 2025. This initiative will further help industries lower their costs. While challenges are inevitable in this transition, the economic and structural benefits far outweigh any temporary discomfort.
Syed Mohsin Ali
Malir Karachi
