Power problems

The PML-N has admitted its failure to deliver on its key electoral promise: an end to power outages. One wonders if this will have a serious affect on this year’s elections. The questions to ask now are not why the PML-N has not been able to solve the electricity crisis but whether the powers sector is in a worse position than when the PML-N took the reins of government? Minister for Power Awais Leghari admitted last week that power-sector losses have increased three times to Rs360 billion since 2013. The losses have apparently increased because system losses have not been reduced while electricity supply has increased. This is something we have continued to point towards. Increasing power supply without addressing system losses and problems in the transmission grid will only make things worse. The PML-N, however, has continued to commission new power plants without addressing the key issue of transmission capacity. Leghari himself has admitted that this is ‘because of the increase in the quantum of power generated.’ This is a display of mind-boggling policymaking by the government.

The result will be that Pakistan will face greater power outages in the summer. Power-sector officials have confirmed that this is likely to be the case. Having confirmed that the real problem is one of policymaking, Leghari then chose to put up a smokescreen again blaming ‘electricity theft’. The use of the ‘electricity theft’ excuse is a popular one that has currency for those who are comfortable with lazy thinking. The real problem is the skewed power-sector policy framework. The government claims that power generation will reach 25,000MW, compared to 14,800MW in 2013. According to the figures shared, the peak generation capacity and peak demand almost coincide for the coming months. However, the minister’s announcement seems to be a precursor to a formal confirmation that power outages will exceed those that were experienced in previous years. Already, selective power cuts to areas with higher losses have been proposed, but the first question to get to the bottom of is: how exactly did the federal government manage to increase a Rs120 billion loss per year into a Rs360 billion loss? This cannot simply be blamed on consumers nor can it be put on distribution companies whose CEOs were removed in a recent shakeup. The problem comes from the failure to implement holistic power-sector reforms. Generation capacity cannot be increased without addressing the systemic problems plaguing the electricity grid. This is a recipe for disaster, and this is what the minister for power has just confirmed.