By our correspondent
KARACHI: The cost of electricity is set to rise further for consumers across Pakistan, including in Karachi, due to quarterly adjustments. A request has been submitted for the first quarter adjustment of the current fiscal year, aiming to collect an additional Rs 8.72 billion from consumers. The National Electric Power Regulatory Authority (NEPRA) will hear the plea on Tuesday.
The requested adjustment includes Rs 8.06 billion for capacity charges, Rs 1.25 billion for operations and maintenance, and Rs 1.65 billion for system charges and market operation fees. This adjustment comes as part of the ongoing quarterly adjustment mechanism, with consumers currently paying Rs 1.74 per unit under this system. The World Bank has also raised concerns about the future of Pakistan’s power distribution sector, specifically regarding the privatisation of 10 power distribution companies (DISCOs).
In a recent report, the World Bank proposed that the ownership of the DISCOs be transferred to the President of Pakistan before their auction. This recommendation aligns with the government’s sell-off strategy, which suggests that the sector may continue to be a financial burden on the exchequer even after privatisation. During a briefing to the Senate Standing Committee on Privatisation, the additional secretary of the Power Division outlined that the privatisation process of DISCOs is complex and more challenging than the previous privatisation of Pakistan International Airlines (PIA).
Senator Tallal Badar Chaudhry, who chaired the committee meeting, remarked that the privatisation of DISCOs would be significantly more complicated, particularly due to the politically induced policies that have long plagued the sector. The ongoing difficulties in managing the power distribution companies indicate that the privatisation process will face substantial hurdles, with the sector’s financial health still being a critical issue.
