LAHORE: Just in one year, electricity expenses for Pakistani consumers have surged by a staggering Rs 47, making 2023 the most expensive year in the nation’s history. The exorbitant prices have posed significant challenges for citizens, creating difficulties in meeting their electricity bills.
Amidst the overall economic hardships faced by the people in 2023, electricity costs have emerged as a severe economic burden. Reports indicate that this year witnessed record-breaking increases in electricity prices, with rates soaring by Rs 47 over the course of the year. Compounding the issue, several areas experienced 18-hour load shedding episodes multiple times during the year.
The detailed report highlights that electricity rates underwent seven increases and two decreases, driven by fuel cost adjustments. Quarterly adjustments saw a three-time increase. Various surcharges, including overheads, were imposed four times during the year, contributing to a cumulative rise of 22 rupees 18 paise per unit in electricity costs.
In compliance with International Monetary Fund (IMF) conditions to address the revolving debt, the government raised the basic price of electricity by 7 rupees 50 paisa per unit. The minimum price was fixed at 25 rupees, while the maximum reached 43 rupees per unit.
Furthermore, the government abolished electricity concession packages in 2023. Subsidies, such as the 3 rupees 60 paise per unit subsidy for farmers and the 19 rupees 99 paise concession for import industries, were withdrawn in February.
Responding to the alarming surge in electricity prices, the caretaker energy minister attributed the main cause to capacity payments. He revealed that the dangerous terms of capacity payments in power projects have contributed to the escalating costs, prompting the government to consider alternative energy sources. The power sector’s revolving debt has now reached a staggering 2600 billion rupees, with citizens repaying loans taken for power plant construction with interest. The caretaker energy minister issued a warning, indicating that the burden on electricity consumers is expected to persist, emphasizing the ongoing challenges faced by the sector.
