Grid failure forces Pakistanis to pay more for electricity

Pakistan’s electricity consumers are being forced to pay higher prices because of the National Grid Company’s (NGC) failure to efficiently transmit cheaper electricity from Sindh and southern parts of the country to major consumption centres.

The shortcomings in the national transmission system have increased reliance on expensive sources of electricity, including imported liquefied natural gas (RLNG) and imported coal. As a result, consumers are bearing the additional cost of generating electricity from these costly fuels despite the availability of relatively cheaper alternatives.

The transmission bottlenecks are preventing the country from fully utilising electricity generated from Thar coal, nuclear power plants and wind energy. These sources could help reduce the overall cost of electricity if their generation capacity were effectively integrated into the national grid and delivered to areas with higher demand.

The failure to transfer cheaper electricity from southern Pakistan to major urban and industrial centres has created a significant imbalance in the country’s power supply system. Although relatively affordable electricity is being generated in different parts of the country, transmission constraints are limiting its availability to consumers.

Consequently, power producers are increasingly relying on expensive RLNG-based plants and imported coal to meet electricity demand. This raises the overall cost of power generation and places an additional financial burden on electricity consumers.

The situation has further aggravated Pakistan’s electricity pricing crisis, highlighting the urgent need to address weaknesses in the national transmission infrastructure. Improving the transmission network would allow the country to make better use of its cheaper domestic energy resources, reduce dependence on costly imported fuels and potentially bring down electricity costs for consumers.