Power rates hike in an economy like that of Pakistan not only further depresses the national economy, but also inflicts inflationary effects on general price structure for the common man of the country. It is a single factor, which adversely hits the lives of the poor and middle level citizens. The industry and agriculture are seriously affected in costs of production, resulting in the consequential impact.
An analysis of the factors resulting in power rates would boil down to mismanagement of the power system, especially due to high technical losses prevailing in the power supply system, inefficiencies of state controlled generating plants having lower thermal efficiencies than those of IPPs and the private power plants.
Let us x-ray the whole scenario of factors resulting in upward power rates revision. However, some positive initiatives of the Federal Ministry of Power in this respect will have long-term remedial effects in controlling the situation if implemented in letter and spirit.
