Capacity charges are a significant component of electricity bills, reflecting the cost of maintaining power generation infrastructure to meet peak demand. While essential for ensuring a reliable power supply, the current structure of capacity charges has led to inflated bills for consumers, particularly during periods of low electricity consumption. To tackle this issue effectively, several reforms are imperative including transparent cost-analysis, demand-side management strategies that promote energy efficiency like incentivizing off-peak consumption, integration of renewable energy and tariff rationalization. It is imperative for stakeholders, including policymakers, regulators, power utilities companies and consumers to collaborate closely to address the issue of capacity charges effectively. By implementing the proposed reforms, we can achieve a more sustainable and affordable electricity system that benefits all stakeholders.
Hammad Lashari
Lahore