In a move that resonates with longstanding demands of the public, government is contemplating an end to provision of free electricity to government officials and agencies, including bureaucrats, judges and parliamentarians. Ending this provision would send a clear message that government is serious in tackling power sector related issues. It will be more than a cost cutting measure, reflecting also a commitment to fiscal responsibility.
The energy sector’s woes have undoubtedly been a significant drag on our economic stability. Despite constant increases in electricity and gas prices, circular debt has ballooned to an alarming 5.73 trillion rupees. This debt has undermined economic growth, placing an enormous strain on national budget and hindering country’s progress. The plight of poor consumers is evident from some reports that suggest that annual power use is expected to fall consecutively for the first time in 16 years as higher tariffs curb household consumption. Despite summer temperatures surging to near a record, which typically boosts air conditioning and fan use, common man has reduced electricity consumption, as they can no longer afford the escalating bills.
The government’s decision to develop an emergency plan within Ministry of Energy is a step in the right direction, but it should not remain only on paper. It must be pursued and implemented vigorously, with out of the box solutions. One critical area that needs immediate attention is renegotiation of agreements with IPPs with a focus on making energy more affordable for the public. Moreover, the government must prioritise development of indigenous sources of energy. This will not only uplift industries and stimulate economic growth but also provide much-needed relief to the public, who are bearing brunt of high energy costs. It is high time that government demonstrates its resolve to address deep-rooted issues in the power sector with decisive actions.
