This letter refers to the news report ‘Nepra set to hike base tariff’ (July 10, 2023). According to the report, the tariff department has recommended an increase of Rs6.9 per unit. The electricity bills are already so high that even the middle class is struggling to afford them. What impact will this hike have on the lower-income segment? Such flawed policies first scared away commercial users, many of whom established their own captive power plants, and are now scaring away domestic consumers. Those who can afford to do so are switching to solar systems with net-metering connections. This is a serious long-term threat to the viability of DISCOs. An entity that has too few paying customers is doomed to failure — sooner rather than later.
Ayub Malik
Rawalpindi