Why are electricity bills high in Pakistan?

Some cities in Pakistan have recently witnessed protests over high electricity bills. Karachi, Lahore and other cities have seen blocking roads and burning tyres due to high electricity bills. The monthly shock of high bills can lead to financial strain and frustration. It’s a very critical condition for Pakistani people.

Some days ago, the caretaker Prime Minister ,Anwar ul huq kakar,had held an emergency meeting and directed authorities to take concrete steps within 24 hours for the cut in a power tariff . Kakar on Sunday said he represented ”the common man” and measures would be taken to minimize electricity consumption at the PM house and the Pakistan Secretariat. For this he said,”even if the air conditioner in my room has to be turned off,do it.”

 It’s easy to blame the government and utility companies ,but the issue of high electricity bills is dependent on various factors. In this article we will talk about reasons behind the high electricity bills in Pakistan.

Energy generation cost:

One of the primary factors contributing to high electricity bills in Pakistan is the cost of energy generation.Pakistan is heavily dependent on fossil fuels such as oil and gas for electricity generation.Inconstancy in global oil and gas prices have a direct impact on the cost of power generation. When these prices rise,the cost of production electricity rises,leading to higher bills for consumers.

Delivery and distribution losses:

Pakistan’s electricity grid faces a lot of losses during the delivery and distribution process. Old infrastructure, technical losses, and theft contribute to these loses. As a result ,a considerable amount of electricity generated is never billed to consumers. To cover this losses, utility companies often raise tariffs, which eventually increase consumer’s bills.

The revolving credit crisis:

The revolving credit crisis is a repetitive issue in Pakistan’s energy sector.It involves a complex set of unpaid bills,subsidies and delayed payments among various stakeholders,including consumers, the government, and utility companies.This crisis affect the financial stability of utility companies,its forcing them to to pass this burden to consumers through high electricity bills.

Lack of energy efficiency:

Energy efficiency is another aspect of high electricity bills in Pakistan. Many homes and industries in the country do not use energy efficient appliances and parties. This efficiency leads to excessive electricity consumption, resulting in higher bills.

Dependence on imported fuel:

Pakistan’s reliance on imported fuel for electricity generation is a result of high bills. Imported fuel is subject to international market prices and exchange rate instability. Any increase in the cost of imported fuel directly impacts electricity tariffs, making them more expensive for consumers.

Conclusion:

High electricity bills in Pakistan are a complex issue caused by various factors, including Delivery and distribution losses, the revolving credit crisis, energy generation cost, lack of energy efficiency, dependent on imported fuel and government subsidies. These problems require a multifaceted approach that includes improving energy infrastructure ,methods of efficient energy and resolving the circular debt crisis. By taking these steps Pakistan can provide its citizens more affordable and reliable electricity in the future.