Reduction in electricity tariff

It is imperative that govt invests in projects aimed at providing long term cures for Pakistan’s electricity issues

In news that will undoubtedly be welcomed by consumers, the National Electric Power Regulatory Authority has approved a reduction in price of electricity at Rs3.60 a unit. The decision has been based on the petition submitted by Central Power Purchasing Agency which explained that power generation during the month of November, 2016 had been done at cheaper rates. Consumers will feel the impact of the decision in their bills for January, 2017. However, this change does not apply to K-Electric whose consumers will see electricity prices increase by Rs0.60 per unit due to costlier electricity generation. However the reduction in tariffs will not last long term. As the supply of water for hydroelectricity generation dwindles, power generation companies will inevitably have to resort to more expensive fuels thus raising tariffs. It is of note that although nuclear power is the cheapest option available for power generation, its usage in Pakistan is still far too low to have a significant impact on tariff reduction.

Regardless of the fact that electricity consumption is reduced in winter, consumers still have to bear scheduled power cuts. Although these are for less time as compared to summer months, the impact is still felt since during winter, there is also scheduled load management of natural gas. Consumers across the country are essentially left without access to any power source for several hours every day. Temporary cuts in electricity bills, although welcome, do not have an effect on the power generation and consumption issues of our country that have become chronic through long years of neglect or temporary fixes. As was recently revealed by a World Bank survey on the subject, the availability of electricity at affordable rates plays a significant role in the quality of life of middle and lower income Pakistani families. Often these families are the ones most affected by increments in tariff and are sometimes forced to forgo other necessities in order to pay bills. Electricity is a basic necessity and has been for a long time. It is therefore imperative that our government invests in projects aimed at providing long term cures for Pakistan’s electricity issues.

Published in The Express Tribune, December 29^th, 2016.

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