Independent Power Plant (IPPs) electricity contracts with the federal government are not only the capacity charges but also squeezing the economy and the people's blood as these contracts are directly related to the US inflation and the value of the US dollar.
Surprising revelations have come out regarding the electricity inflated rates in Pakistan. The members of the Council of Economic and Energy Journalists Sage, on behalf of the institute, were given a briefing to senior journalists in Karachi.
As per the briefing, due to inflation in America, the electricity tariff component in Pakistan increased by 253 percent during the year 2019 to 2024.
According to the data released in the briefing, the amount of capacity charges in Pakistan in 2019 was Rs3.26 per unit which increased to Rs10.34 per unit in the year 2024.
The impact of US inflation as well as local domestic inflation is also included in the capacity charges charged from the public.
According to the increase in the interest rate in the country, the interest payment in the unit of electricity increased by 343% in four years. The working capital of IPPs made a unit of electricity expensive by 716 percent in four years.
Electricity tariff from 12 to 20 percent while 70 percent are capacity charges.
SDPI experts advised the government to implement a centralized tariff policy instead of a uniform electricity tariff policy.
The capacity is 23,000 MW.
Due to solarization in the country, the capacity charges will further negatively impact the citizens.
