The continued increase in electricity tariffs has become unbearable for ordinary citizens already struggling with inflation. Recent announcements regarding adjustments in power prices and the ongoing burden of capacity payments have once again sparked public concern across the country.
While authorities justify these hikes as necessary for economic stabilisation and compliance with international financial commitments, the impact on households and small businesses cannot be ignored. For a salaried middle-class family, monthly electricity bills now consume a significant portion of income. Small shopkeepers and entrepreneurs are equally affected as higher utility costs reduce profit margins and discourage business activity.
What makes the situation more alarming is the structural issue of capacity payments, payments made to power producers regardless of actual electricity consumption. Inefficiencies in energy planning and long-term contracts have placed an unfair financial strain on consumers who have little control over policy decisions.
Instead of repeatedly transferring the burden to the public, policymakers must prioritise renegotiating costly agreements, reducing transmission losses and expanding renewable energy solutions. Transparent reforms and accountability in the power sector are urgently needed.
Fiza Aslam
Islamabad, Pakistan
