On its way to steering country out of persisting economic turmoil, the government a couple of days back took another leap forward for lessening the power tariff burden from domestic and industrial consumers.
As the soaring electricity prices had been playing havoc with consumers for last two decades, the coalition government led by Prime Minister Shehbaz Sharif came out with another relief in power prices.
“We are announcing another relief for power consumers,” stated the Prime Minister announcing reduction in electricity prices with an average Rs 7.41 per unit cut for domestic consumers and Rs 7.69 per unit cut for industrial consumers.
“This is another step towards economic stability as the government aims to sustain progress in economic sector,” Shehbaz Sharif said announcing that in June 2024 the per unit price for industrial sector was Rs 58.5 per unit which was first reduced by Rs 10.3 in June 2024 and now by another Rs 7.69 per unit.
Seeing in present circumstances, it is yet another daring step by the government amidst internal and external pressures and economic compulsions. The power tariff had become a double edged sword and a tight rope for the government to tread. But, it really showed courage and made a bold decision to provide relief to masses.
It can also validly be stated as an outcome of the government’s endeavors to shifting to renewable energy sources, renegotiating power contracts and offering targeted relief packages to consumers.
Consumers, industrialists and traders organizations have broadly welcomed the decision and hoped that coming days would bring more relief for them.
“Every month, I dread opening the electricity bill. It feels like a gamble; you never know how much it is,” remarked Irum Hameed, a resident of G-11, Islamabad. “With the rising costs of living, it was becoming increasingly difficult to manage,” she said as her sentiments reflected the growing concern felt by many citizens struggling with rising energy costs. “But, with the current decision, we hope some relief. It was the much expected decision by the government and we praise the Prime Minister for it.”
In response to widespread crisis, the government had intensified efforts to overhaul the energy sector. Focusing on reducing dependency on costly imported fuels and shifting to cost-effective, reliable and environment friendly energy, it accelerated transition to sustainable energy sources like coal, wind, solar and hydropower.
A key part of the strategy was an Integrated Generation Capacity Expansion Plan (IGCEP) to prioritize local hydro and renewable energy resources to produce cheaper power as well as modernizing the power grid.
Presidents of different Chambers of Commerce and trade organizations have also commended this decision of the government hoping, it would bring about positive changes in business environment.
“This is a positive step towards bringing about positive changes in business environment and materializing promises of the present government,” remarked President Faisalabad Chamber of Commerce and Industry Rehan Naseem Bharara.
“With our industrial sector experiencing serious crisis over the years, such decision would restore industrialists’ confidence and put this sector back on track, enhance exports and bring in more foreign exchange,” he stated.
In view of other decision of the present government, Minister for Power Division Sardar Awais Ahmed Khan Leghari had previously announced savings of Rs one trillion through negotiations with Independent Power Producers (IPPs) where agreements with five IPPs were terminated saving Rs 411 billion annually.
The government had also announced benefits for agricultural tube wells and consumers using up to 300 units per month as these were previously discontinued. Another step is reducing electricity tariffs under the monthly fuel charge adjustment.
The Bijli Sahulat Package also offered flat rates during winter and subsidies for low-income households, including a special tariff of Rs 26.07 per unit for both domestic and industrial consumers.
The government’s push for renewable energy is also gaining momentum, with over 2,000 MW of solar power added to national grid in 18 months. The number of solar net-metering consumers grew to 283,000 by December 2024. Installed solar capacity rose from 321 MW in 2021 to 4,124 MW by December 2024.
The Minister for Power foresees the solar energy growing further with plans to add 1,000 megawatts annually over next 12 years. Projects like the Suki Kinari Hydropower and solar energy initiatives are also hoped to reducing electricity costs by generating over 3.5 billion units of clean energy annually, powering more than 150,000 homes.
Decentralized solar solutions are gaining popularity, as young entrepreneur Zainab Ali shared, “The initial investment was daunting, but I have seen a significant drop in electricity bills. It highlights both financial and environmental benefits.”
Fatima Rashid, a university professor also appreciated this decision and suggested the adoption of smart meters and energy-efficient appliances. “The government should provide more incentives for such technologies to lessen the burden on consumers.”
Since, the government is also implementing reforms like the establishment of an Independent System and Market Operator (ISMO), privatization of Distribution Companies (DISCOs) and restructuring of NTDC and CPPA-G, we can hope for better days ahead where consumers are relieved from the shackles of costly power.
