Will Electricity Prices Reach 100 Rupees per Unit?

According to the chairman of the Finance Committee, Saleem Mandviwalla, electricity prices may reach as high as 100 rupees per unit.

Senator Saleem Mandviwalla said in a meeting of the Senate’s Finance Committee, “IPPs remained a problem for the last 10 to 20 years.”

He rightly focused on the point that things would continue to go bad until the structure and processes are set right.

Saleem Mandviwalla said the electricity price may touch 100 rupees per unit.

Read Also: Power Shortage in Pakistan Reaches 6,832 Megawatts

He said that the main problem is not the IPPs; it’s electricity theft, as the quantum of electricity produced doesn’t correspond to the recovery of revenue. He asserted that IPPs are an incidental problem.

He pressed for the need to resolve the immediate problems first. The entire power sector requires reforms and it is the responsibility of the government to take up these issues and resolve them.

The Chairman of the Finance Committee further berated the absence of forensic and technical audits of IPPs, implying that these problems have their roots in far-flung collusion.

Pakistan Seeks Help Of China For Power Transmission Faults

On the other hand, there is a positive development for the improvement of the system of power transmission, it is Pakistan has decided to take help from China to rectify the prevalent flaws.

According to media reports, Prime Minister Shehbaz Sharif will meet the Chinese ambassador for discussing the improvement in the power transmission network. The plan is all about collaboration between the two countries to improve the system with the help of the China State Grid.

Due to the already present faults in the transmission system, cheaper power plants have been kept off. Persistent technical faults in the power transmission system were identified. Resolving these technical faults could result in a cost reduction of 2 rupees per unit of electricity.

Power Shortage in Pakistan Reaches 6,832 Megawatts

Different areas of Pakistan are experiencing power outages of up to 14 hours due to the shortage of 6,832 megawatts. Many regions of the country are facing 8 to 10 hours of load-shedding, while those areas who have higher reports of electricity theft are experiencing load-shedding of 12 to 14 hours.

The electricity demand of Pakistan is 26,700 megawatts, while the current production is only 19,668 megawatts.

According to media reports, hydroelectric sources generate 6,520 megawatts, government thermal power plants produce 650 megawatts, and private sector power plants contribute 7,878 megawatts.

Read Also: Pakistan Seeks Help Of China For Power Transmission Faults

Additionally, wind power plants are generating 1,080 megawatts, solar power plants 194 megawatts, biomass (bagasse) 124 megawatts, and nuclear power plants 3,222 megawatts.

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