To rob Peter to pay Paul

2026-02-07 - 23:46

THE latest move of the Federal Government to introduce fixed charges for both protected and unprotected residential consumers to fund a relief package of Rs4.04 per unit for industrial consumers is the classic example of robbing Peter to pay Paul. Under the proposal, which is slated for implementation within the current month, protected consumers using 51–200 units would face fixed charges of Rs200–300 per month, while unprotected consumers consuming up to 600 units could see up to 100pc increases in fixed charges, with monthly rates rising from Rs200 to Rs675 depending on consumption. Conversely, households consuming 601–700 units and above 700 units would see fixed charges reduced from Rs800–1000 to Rs675 per month. The Power Division has justified the proposal on the ground that it has become necessary to rationalize the tariff structure in view of the existing structural misalignment between the determined revenue requirement of the power sector, where a substantial portion comprises fixed costs and the predominantly volumetric recovery mechanism under the current tariff, coupled with the significant expansion of off-grid solar. It is, however, the height of injustice that instead of addressing the real causes, the government frequently resorts to the easiest approach of adding to the burden of consumers, who are made to pay one of the highest electricity tariffs in the region. The real issues are capacity charges and rampant theft and leakages that take place with the active collusion of the officials concerned. The imposition of fixed charges effectively reverses the downward revision in the tariff announced last year and pushes consumers towards the solar option. Instead of offering a solution, the move of the government will add to the complexity of the challenges facing the power sector.