electricity rates in pakistan by mirza majid ali

8/6/2019 Electricity Rates in Pakistan by MIRZA MAJID ALI

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The Question is:

Why areElectricity ratesincreasing inPakistan?



Introduction:

Energy is considered to be life line of any economy and most vital instrument of socioeconomic development of a country.Energy is pivotal in running machinery in

factories and industrial units, for lightingour cities and powering our vehicles etc.By energy crisis Electricity rates keeps on

increasing in Pakistan all the time. Pakistan

is facing huge energy crisis and the demandof electricity is increasing on daily basis.The electricity shortfall has hit the recordlevel of 7,075 MW and its not looking to be

resolved in near future.



Introduction. . . .

Electricity rates are

increasing in Pakistandue to inefficientgovernment policies,

dependence on oil andlack of latesttechnology.



Basic reasons behind the increase

electricity rates in Pakistan: Lack of Government attention

Inefficient Government policies Lack of Future planning

Lack of funds to dealing Authorities

Dependence on oil

Excessive Usage of oil for electricity production

Varying oil Prices

Pakistan an importer of oil



Basic reasons behind the increase

electricity rates in Pakistan. . .Lack of latest Technology

Lack of technology to completely utilize otheravailable resources in country

Line losses due to aged transmission system



Role of Government:Inefficient Government policies:

Electricity rates are increasing in Pakistan on daily

basis. This is mainly due poor government policies tocontrol electricity rates. So far government has nottaken reliable steps to control electricity rates.

Lack of Future planning:

Government is preferring to use rental power plantsand has done nothing for searching alternate sources.Pakistan has large coal reserves but they have not beenused much. Only 150 MW of electricity is beingproduced from coal.



Cont Another factor to look at is lack of future planning.Government is totally failed to forecast and plan for future. With the increasing demand of electricity, government

should have planed to overcome the energy crisis in future.New dams should have been build.

Lack of funds to dealing Authorities:

Due to governments inability to increase the existinggeneration capacity , rapidly increasing demand and lackof funding .PEPCO has no choice, but to increaseelectricity tariffs.



ContImran Khan the leader of Tehreke-insaf Pakistan saysin one of his recent interviews on his Forum

We the simple people of Pakistan expect that our dumband uneducated politicians are capable of solving ourElectricity problem. To be very honest, our dumb

politicians are coming out with all the wrong andtotally absurd, laughable solutions like having twoholidays and shutting down shops at 8 oclock.



Dependence on Oil:Use of oil furnaces:

Pakistan is producing most of its electricity by oil. Out of

19,500 MW installed capacity of electricity generationabout 13,000 MW is produced through oil and gas. Due tothis excessive use of oil electricity produced is much moreexpensive.



Cont V arying oil prices:

Moreover the prices of oil keeps on varying in

international market, this directly effects the costof electricity produced from oil.



ContPakistan is not a natural producer of oil, Pakistan has to

import oil to fulfill its needs. So the electricity producedfrom this imported oil is much more expensive.

The production cost of furnace oil electricity is Rs 16per unit, add to it the transmission, distribution cost(including loses), the total cost of such electricity

works out to approximately Rs 22 per kWh.



Cont7200

65005800

450 1500

1000

2000

3000

4000

50006000

7000

8000

Power

from Oil

Power

from

water

Power

from gas

Power

from

Nuclear

Energy

Power

from

Coal

Power in MW



Lack of Latest technologyLack of usage of alternate sources:

Pakistan is a blessed country and has large coal and water reserves. Pakistan also have potential for solarand wind power generation. But still Pakistan isproducing expensive electricity in the region. This

because of lack of latest technology to completely exploit the potential in country. So Pakistan has torelay mainly on oil for electricity production.



ContLack of latest technology:

Technology is growing very fast in the world nowdays. So in order to catch up with the world, thecountry must have to keep pace with this growing

technology. In Pakistan the technology is growingbut it is still not to the advanced level. One reasonof increasing electricity rates is use of agedtechnology and lack of new technology.



ContLine losses:

The other reasons to look at are line losses. About 30% of electricity is lost due to aged transmission system.The transmission system needs to be upgraded afterevery 5-10 years to minimize the line losses. The

transmission system in Pakistan is over aged, but stillit is in use.



WE WANT ELECTRICITY IN PAKISTAN:

Electricity now is @11 Rs. per unit, and it will increase afterevery two months as directed by (American) IMF policies.

A lso CHIN A offers to Pakistan Electricity for just R s.200 Monthly Bill and Unlimited Usage of Electricity but our government is not taking the offerseriously. This is because there will be neither kick

backs nor any commissions to be pocketed by thestrong mafia of politicians and bureaucrats.



Conclusion:

To sum all reasons for increasing electricity rates are mainly inefficient government policies, lack of governmentsattention to this issue and lack of future planning. Pakistanhas vast coal reserves but a very less percentage of electricity is produced by coal. Pakistan also has potential for wind and

solar energy, which can be used to overcome this energy crisis. New dams must be built and government now has toshift to alternate sources for electricity production and alsohas to minimize the use of oil and has to overcome thetechnical and line losses to control the increasing electricity

prices in country. The transmission system needs to beupgraded after every 5-10 years to minimize the line losses.The transmission system in Pakistan is over aged, but still itis in use. Government should have to reorganize its policiesand has to plan for the upcoming future to overcome this

energy crisis in future.



ContDeveloping new energy resources :

o Tapping indigenous resources (Thar coal)o Using renewable resources (water) by constructingnew dams and hydro power plants

o Import of natural gas by IPI (Iran Pakistan India)and TAPI (Turkmenistan, Afghanistan, Pakistan andIndia) pipelineso Import of electricity from Tajikistan -through Pak

Afghan Tajikistan transmission- and Iran(approximately 1000 MW from each of them) pipelines



ContUtilizing alternative energy resources :

i Wind power

i Biodiesel /Biomassi Solari Tidal

Increase civilian nuclear capacity:

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