Experts for simplifying power tariff structure

Experts at a webinar organised by the Sustainable Development Policy Institute (SDPI) on Tuesday called for the simplification of Pakistan's electric power system and tariff structure to alleviate the burden on consumers.

They stressed that the National Electric Power Regulatory Authority (NEPRA) and the Ministry of Energy determine electricity tariffs, and independent power producers (IPPs) or distribution companies (DISCOs) cannot change them unilaterally.

The webinar also marked the launch of SDPI's latest booklet, Understanding Electric Power System and Tariff Structure in Pakistan: A Basic Guide, which aims to clarify tariff setting for consumers. Moderating the session, Zainab Babar from SDPI noted that recent tariff changes and energy policy shifts have caused confusion and unrest among both consumers and policymakers. "This booklet aims to present the power system and tariff setting process in a way that is easy for the general public to understand," she said.

Engineer Ahad Nazir, Programme Manager at SDPI, stressed the complexity of Pakistan's power sector. He highlighted that even experts struggle with the intricacies of the system, and this booklet simplifies it by explaining the value chain from power generation to tariff determination. "The most common questions from consumers involve fuel price adjustments and quarterly tariff updates," Nazir added.

Dr Khalid Waleed, SDPI's energy expert, underscored the importance of price signals in shaping demand and supply in developing countries.