Booklet debunking myths around electric power tariff structure launched

Islamabad: Ahad Nazir, Head, Centre for Private Sector Engagement, has said that Pakistan’s power sector is technical and complex while the most frequently asked questions by the consumers are pertaining to fuel price adjustment and quarterly tariff adjustment.

Mr Nazir was addressing a webinar organised here to launch Sustainable Policy Institute’s latest booklet "Understanding electric power system and tariff structure in Pakistan: a basic guide." 

Zainab Babar from SDPI moderated. Mr Nazir observed that the booklet endeavours to make this complex subject understandable with the value chain approach from power generation to transmission, distribution and finally how tariff is determined as even experts qualified in energy subjects are finding it hard to grasp. He said the booklet sheds light on these aspects, he added.

The consumer, he said needs to be aware of the myths and confusions regarding power sector in terms of exchange rate, fuel prices, generation efficiency, he said. He further added the tariff is set by NEPRA and the Ministry of Energy and other organisation be it GENCOs or DISCOs can unilaterally decide power tariffs. He added that all the myths pertaining to power sector have been debunked in the SDPI’s booklet that needs to be widely publicised to educate the masses on their misconceptions in this regard.

Dr Khalid Waleed from SDPI and Energy Expert said price signals are very important for developing countries in the power sector as it is used to drive demand and supply of power to drive policy decisions.