The Power Division on Tuesday announced electricity loadshedding of 2.25 hours daily between 5 p.m. and 1 a.m., noting that if the government resorted to producing electricity through expensive resources, they may face hefty increases to electricity bills.
Pakistan, much like the rest of the world, is grappling with an energy crisis resulting from blockades on the Strait of Hormuz shipping lane, hampering fuel supplies.
In its statement, the Power Division said the government’s policy aimed to minimize the use of expensive fuel and avert the potential increase in electricity prices. It maintained the government had managed to reduce the per-unit price of electricity for all domestic consumers from July to February, delivering relief amounting to Rs. 46 billion.
The Power Division attributed the reduction to prioritizing low-cost sources and reducing transmission and distribution losses by improving distribution networks. Resultantly, it claimed, the overall system efficiency had both significantly improved and consumers received direct and substantial relief.
Claiming the government was still capable of producing electricity as per requirements, it dubbed the “greatest challenge” as “peak hours” from 5 p.m. to 1 a.m., maintaining there was significant increase to electricity demand, especially amidst a decrease in production from hydroelectric power plants at this time. “If we have to rely on fuel to meet these requirements, it could cause a substantial increase in electricity prices,” it said, adding to avoid increasing prices and minimize the use of “expensive” fuel, electricity supply would be suspended for 2.25 hours during “peak hours” daily.
“The prime minister has given our team the directive that under no circumstances should there be an excessive increase in electricity prices. If using furnace oil causes some price increase, then such measures must be adopted to minimize the increase,” it continued, claiming the decision had averted a Rs. 3/unit increase in the electricity price. However, it said, the “limited” use of furnace oil would still result in an increase to the price of electricity by Rs. 1.5/unit.
The Power Division maintained distribution companies would apprise consumers of electricity suspension times, adding efforts are underway to ensure consumers face minimal inconvenience. It also sought to negate the impression this was “loadshedding,” describing it as a “Peak Relief Strategy.” It also urged markets to reduce their operational hours to reduce electricity demand, claiming it would further decrease the anticipated massive increase in prices.
Most parts of Pakistan have been experiencing unannounced loadshedding for the past week, with the government not apprising citizens of the reasons behind the move. The Power Division statement is the first such communication of the power outages.