Leader of MQM-P Mustafa Kamal, criticized the current electricity billing system, revealing that out of every Rs 100 on an electricity bill, Rs 71 are allocated to capacity charges for power that is not being generated. Kamal questioned why consumers should pay for electricity capacity that is not utilized, highlighting the issue of excessive capacity charges.
He pointed out that successive governments have signed agreements with independent power producers (IPPs) which contribute to the high cost of electricity. Kamal advocated for the end of distribution companies’ monopolies and suggested issuing licenses to more power companies to foster healthy competition and reduce electricity costs for consumers. He recommended the introduction of pre-paid electricity meters to better manage and control electricity usage.
Kamal highlighted the severe impact of circular debt, noting that the government owes Rs 2,600 billion, with Rs 1,700 billion payable this year alone. In contrast, the overall development budget is Rs 1,400 billion.
