Analyst links survival of industries to reduction in power bills

KARACHI: Unless the ‘imposed charges’ on electricity bills are offloaded and the bills are reduced, the survival of the industry as well as the household is not possible, said economic and financial analyst Ateeq-ur-Rehman on Monday.

“We are the highest taxpaying electricity consumers in the world; therefore our industries are suffering, the SMEs are suffering, cottage industry is suffering and also the household is suffering. All of them are in hot water because of high electricity cost,” he said.

“Besides electricity variable charges, we pay uniform quarterly adjustment, fuel adjustment, electricity duty, general sales tax and what not; thus the electricity charges continue to balloon without regard to the pain and agony of the common man.”

When it comes to households, sometimes the electricity bill is more than an individual’s salary, Mr Rehman said. When it comes to industries, due to the huge cost of electricity industrial units are out of competition and production. Ultimately the export suffers and consumers face the consequences.

All over the world, he said, the increase in consumption eventually reduces the charges. “However, it is the opposite in our case. An increase in consumption leads to increase in charges. This is devastating.”

Mr Rehman added that due to mismanagement and poor governance on the part of electricity producers, the cost of electricity production is so huge in Pakistan that it’s simply not seen elsewhere in the world.

To reduce the cost of power generation, electricity producers should concentrate on reducing their line losses through better production, transmission and distribution practices.

“Good governance is missing, thereby hurting the prospects of economic development of the country,” added Mr Rehman.

Copyright Business Recorder, 2022