Dr. Gohar Ejaz, former caretaker commerce minister, has expressed deep concerns over the sharp increase in electricity tariffs, questioning the significant disparity between the production cost and the charges billed to consumers.
In a recent tweet, Dr. Ejaz revealed that the production cost of electricity in July was only Rs. 9.03 per unit, yet consumers are being charged rates as high as Rs. 80 per unit. He noted that in July, Pakistan’s total average electricity generation was 20,000 megawatts, with 35%—or 7,000 megawatts—generated from cost-effective hydropower sources.
Dr. Ejaz attributed the inflated electricity bills to mismanagement and the payment of capacity charges for electricity that was not produced. He emphasized that while Pakistan has the capacity to generate over 43,000 megawatts, consumers should only be billed for the electricity that is actually generated. He called on the federal government to ensure fairness across all sectors—residential, commercial, industrial, and agricultural—as many are struggling under the current high rates.