Pakistan’s rising energy prices are severely affecting the general public’s ability to afford it and their usage habits, according to a recent survey.
This worrying trend costs consumers and makes it difficult for power distribution firms (Discos) to recover. The Institute of Policy Studies in Islamabad ran a survey titled “The impact of rising electricity prices on consumer behavior: The case of power distribution companies in Pakistan” to investigate this topic.
Over 1,000 households and 140 store owners from the top ten cities in the nation were involved. The results made clear the negative effects that rising power prices have on both customers and Discos.
The poll found that as people try to control their rising costs, consumption has decreased as a result of the rising cost of electricity. However, despite initiatives to cut back on electricity use, a sizeable percentage of respondents said their bills had not decreased noticeably. For discos, this unsettling tendency has far-reaching effects because it negatively affects their recovery rates.
Their ability to pay for electricity purchases from generation firms, maintains distribution networks, and pay debts is hampered by declining earnings.
Additionally, the opportunity for infrastructure improvements, high-quality services, and general increases in the reliability of the energy supply is constrained by these financial constraints.
The survey recommends tactics for Discos to lessen the adverse effects of price increases and advocates for effective steps to address consumer concerns about affordability. It highlights the need for better governance and regulatory frameworks in the energy industry, cost-effective electricity rates, and adaptable payment mechanisms to account for a range of economic conditions.
The study also emphasizes how crucial it is to address problems like load shedding and raise consumer awareness of peak hours when electricity prices are highest. The study offers insightful information on the relationship between Pakistan’s escalating electricity prices and consumer behavior.
