Electricity Prices Reduced
There is great news for people worried about expensive electricity, the National Electric Power Regulatory Authority (Nepra) has announced a reduction in electricity prices. Electricity has been reduced by 75 paise per unit for government discos consumers, while a reduction of 49 paise per unit has been approved for K-Electric consumers.
Details of the reduction
According to Nepra, this reduction has been made under the monthly fuel price adjustment. This relief has been provided to government discos consumers in the form of the November FCA, while the reduction has been made for K-Electric consumers in the October FCA.
Prime Minister’s instructions
Prime Minister Shehbaz Sharif said on this occasion that industrial, agricultural, and export sectors cannot develop without reducing electricity prices. He added that the government must also approach the IMF to reduce electricity prices.
Electricity tariffs of other countries
Former caretaker minister Gohar Ijaz has described Pakistan’s electricity tariffs as expensive compared to those of regional countries. According to him, the electricity rate for industries in Pakistan is Rs 44.56 per unit, while in other countries these rates are as follows:
Egypt: Rs 10.58 per unit
Turkey: Rs 16.43 per unit
Bangladesh: Rs 20.89 per unit
India: Rs 23.39 per unit
Vietnam and Sri Lanka: Rs 23.67 per unit
Need for reforms
Describing reforms in the electricity sector as inevitable, Gohar Ijaz presented a few suggestions:
Electricity rates should be fixed at Rs 26 per unit.
The agreements with IPPs should be reviewed and payments should be made only for electricity generation.
The loss-making electricity distribution companies should be privatized.
Conclusion
The reduction in electricity prices is a welcome step for the public, however, reforms and setting tariffs on par with regional countries are essential for sustainable improvement in the energy sector.
