Govt unveils peak hours relief strategy to curb power price hike

ISLAMABAD: The government has introduced a new strategy to prevent a major increase in electricity prices.
According to the Power Division, under the Peak Hours Relief Strategy, potential price increases will be controlled while maintaining electricity supply.

The spokesperson said that due to continuous reforms and better planning, electricity prices decreased by an average of 71 paisa per unit from July to February, which provided a total relief of about Rs 46 billion to consumers.

Officials said that system improvements, strict implementation of the merit order and prioritization of low-cost power sources made it possible to reduce costs, while better planning and effective use of generation capacity also reduced transmission and management losses.

However, officials warned that the biggest problem occurs during peak hours, i.e. from 5 pm to 1 am, when the demand for electricity increases significantly. During this time, due to a decrease in hydroelectric power generation, there is a need to rely on expensive fuel, which is likely to increase electricity prices.

To deal with this situation, the government has decided to impose limited power cuts of about 2.25 hours during peak hours, which has been termed as a strategy instead of traditional load shedding, to prevent a possible increase in the price of up to Rs 3 per unit.

Furthermore, under special instructions, 80 mmcfd of local gas has been provided to power plants, which prevented a further increase of 80 paisa per unit and reduced the need for additional load management.

According to officials, despite these measures, a slight increase of about Rs 1.5 per unit is possible, however, if these measures were not taken, prices could have increased by Rs 5 to 6 per unit.

The government has directed distribution companies to provide clear schedules to consumers so that transparency is maintained and the public faces minimal inconvenience.