New financial burden on electricity consumers
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The National Electric Power Regulatory Authority (NEPRA) dropped another electricity bomb on the people due to severe inflation and made it more expensive in the whole country.
By increasing the price of electricity by 3.75 rupees per unit, the consumers will have an additional burden of 46 billion 60 crore rupees. Accordingly, consumers will be charged an additional 1.90 paise per unit in June and 93 paise per unit in July and August respectively. 2.75 in the second quarter of the current financial year 2023-24. The new financial burden that this series of quarterly adjustments will impose on the consumers from July to September looks more alarming. Behind this very troubling situation are the IPPs, through whom 62% of the Excess electricity has to be generated from the most expensive sources of oil and gas. Pakistan, which has been blessed by nature in the form of water, solar energy and wind, and it is a nuclear country, is barely able to meet all of them by extracting 38% of the total production.
There are 185 billion tons of coal reserves in the country, from which no benefit is being derived. The country has the capacity to generate more than 60,000 MW of electricity through hydel and this is twice the current demand. By abolishing dependence, the price per unit of electricity will not be more than five rupees. It will be necessary that the projects of cheap electricity which have been closed, should be tried to make them part of the national grid immediately. This will eliminate the element of quarterly adjustment. Also electricity theft and free supply should be stopped. Meanwhile, the punishment of long load shedding of electricity in the apocalyptic heat has made it impossible for the people to live, against which they are protesting from Karachi to Khyber. Despite the claims of abundant electricity and a clear reduction in its demand, the shortfall could not end and it has reached 5,390 megawatts, which is causing loadshedding. This may be attributed to faults in the power supply sector or power theft or to say that losses are high and recovery is low leading to serious problems. The question is who is responsible for it and who will remove the defects? Just saying that load shedding is happening only on high loss feeders cannot be exonerated. There is a nationwide crackdown on power thieves. Strict orders are also issued against over-billing but the problem is not being solved. At present, the citizens are worried about the prolonged power outages in the big and small cities of the country in the hot summer. They have no rest during the day and no sleep at night. Housewives are suffering from mental anguish.
Business has come to a standstill. The duration of load shedding has reached six to eighteen hours. In Khyber district, citizens stormed the grid station and staged a dharna. Traders in Gilgit-Baltistan went on a shutter-down strike. Citizens came out on the streets in many areas of Balochistan. In Punjab and Sindh, people are burning from the heat on one side and electricity is missing on the other side. Prime Minister Shehbaz Sharif has tried to calm the anger of the people by giving instructions to take strict measures to end unauthorized load shedding and theft of electricity, which is welcome so that we can have a solid plan for the future along with removing the basic defects. There is a need or else loadshedding will keep knocking on the doors of citizens. It is clear from news reports and general public perception that even though inflation has come down in the country, the situation of utility bills is worrying. There has been a phenomenal increase in the number of people falling below poverty, while even the middle class people have found it difficult to make ends meet. Many children have dropped out of schools because their parents are unable to afford the huge educational expenses. On the other hand, due to the state of the country's economy, it is also necessary to get a new loan program of the International Monetary Fund (IMF) and fulfill its strict conditions. In this scenario, the state is bound to fulfill its basic obligations. However, the Govt has to plan such a plan that brings hope and happiness to the people. Provision should be made that food and daily necessities (which come under the category of food basket) are available to people according to their purchasing power. And along with this, the utility bills must be taken notice of. With the futher increase in electricity prices, the masses are in a shock as they are not prepared for any additoinal burden which has been imposed on them. The state holds the status of mother to its people, it has to fulfill their basic needs at all costs.
In this chapter, where it is necessary to increase the tax base to reduce the tax burden on the lower income earners and ensure direct collection of taxes from the elite, an atmosphere should be created in which employment opportunities for the people increase. Utility bills are the main issue for masses right now as the common man has been finding it difficult to cater to the electricity and gas needs of the family due to high prices of electricity and gas. And one more thing, the humour regarding tax on solar energy has also added to masses worry. They are double-minded whether to opt for solar energy or not as they are scared by the news of imposition of tax on solar energy resources well in the coming budget.