‘Cheap’ electricity

Article Type

Article

Description

The article examines Pakistan’s electricity crisis and argues that “cheap electricity” through government subsidies is not a sustainable solution. Subsidies, rising debt, inefficient power companies, transmission losses, electricity theft, and unpaid government bills have contributed to the growing circular debt in the energy sector. Although consumers receive electricity at subsidised rates, the actual cost is ultimately borne by taxpayers through higher taxes, inflation, borrowing, and government bailouts. The article highlights the significant rise in power generation costs and the economic losses caused by an inefficient energy system. It calls for meaningful short and long-term reforms, including reducing transmission and distribution losses, controlling power theft, ensuring government departments pay their bills, and addressing circular debt. The author also recommends renegotiating IPP agreements and increasing reliance on cheaper renewable energy sources such as wind and solar power.

Publication Source

DAWN

Publication Date

7-13-2021

Pages

07

Link to Full Text

Share

COinS