Energy crisis unplugged

If you were to ask people across the country what they are frustrated with most, the answer is quite easy and, most importantly, unanimous: electricity. Not only are they frustrated with the load-shedding they are going through these days, but they are also frustrated with the bills. It is a strange sort of unfairness, but one must understand that this is not how it is supposed to be.

There are a number of statistics that explain why people are frustrated with the situation. For instance, Pakistan has crossed 42,000 megawatts installed electric generation capacity; however, we are not able to meet even half of this due to fuel, circular debt and transmission losses. The circular debt has crossed 2.6 trillion rupees; it continues to increase every day.

And then, of course, there are the prices, which have risen many times over in recent months, and have led to an increase of over 30 per cent in the average cost of electricity being sent to people across the country in the last year or so. This, for a middle-income family, essentially translates into a choice between keeping their house cool during the scorching summer or not being able to buy food and other essentials.

Some of the government policies are also geared towards electricity conservation; while some of these policies make sense, others are simply a joke. For instance, the early closure of markets and office hours is geared towards electricity conservation; so is the electricity conservation drive we are witnessing these days. But when the temperature crosses 45 degrees or so in Sindh and south Punjab, it is simply a joke to ask people to conserve electricity to the extent they are already doing so.

Then there is the issue of the drive towards solar power, which is becoming impossible to ignore. For instance, if you walk through neighbourhoods in Islamabad or Faisalabad, you will see rooftops covered in solar panels. It is estimated that Pakistan imported over 10 gigawatts of solar panels in 2025 alone. The cost of a small installation for a household can be anywhere between 700,000 to 1.5 million rupees. That's clearly not something everyone can afford, yet people are opting for solar panels simply because they are tired of the uncertainty of the situation.

Of course, solar power is not the complete solution to the situation. For instance, the national grid is still unstable and net-metering policies are starting to change, yet this is not giving people pause for thought before opting for solar power. Those who cannot afford solar power are then forced to bear the burden of increasing tariffs; and the divide between the rich and the poor is visible for all to see.

However, there are solutions to the situation, and none of them is easy or quick fixes. This can start from reduction of transmission and distribution losses, which still remain at 17 to 18 per cent, and would go a long way in solving the situation without the need to build new power plants.

Second, ensuring that the policies regarding solar power remain stable. People would invest if they knew the rules of the game are not likely to change overnight. Then there is the solution of targeted subsidies rather than across-the-board subsidies to ensure the poor get the subsidies they need.

And perhaps just as importantly, there needs to be a more honest conversation. People know the system is strained. People want reassurance that the plan is solid and progress is evident. The main challenge, however, is unpredictability: lights may be on one day and off the next, with no discernible rhythm or reason.