LAHORE: Consumers will have to pay for the surplus power generation capacity regardless of the use, an amount that is set to rise from Rs900 billion now to Rs1.6 trillion by 2030, said a report released on Friday.

The report, titled Pakistan Electricity Outlook 2022 and compiled by the Energy Institute of the Lahore University of Management Sciences (Lums), reveals that the period of the expensive capacity surplus will sustain over the modelled period, ranging from over 15 per cent in summer to over 40pc in winter over peak demand despite an optimistic growth in projected demand.

“It means that the amount of capacity the government has already installed (including that which is under construction/development) — the power system — will remain in surplus capacity, much more than needed,” the report said.

“As a result, the consumers will be bound to pay for this excess capacity regardless of use, which is currently Rs900 billion and will rise to Rs1,600bn by 2030,” said the report.

“If you buy a car on lease and bring it to your home, your leasing period will immediately start whether you drive it or not,” Director Lums Energy Institute Dr Fayyaz Chaudhry told Dawn.

“And this is what is happening with our power sector where everyone continued getting power plants installed and planning to install more in future without thinking to go for digging out the root cause behind increasing demand and find out the solution for decreasing it through energy conservation,” he said.

Published in Dawn, October 22th, 2022

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Lessons from history
Updated 24 May, 2025

Lessons from history

Is it apt for PM Shehbaz to describe the recent thwarting of India’s hostile designs as revenge for the loss of East Pakistan?
Business sentiment
24 May, 2025

Business sentiment

THE recent macroeconomic stability — its vulnerability to potential internal slippages and external shocks...
Sindh protests
24 May, 2025

Sindh protests

WEEKS after locals blocked off major arteries in Sindh to protest a proposal to build new canals on the Indus,...
Regional bonhomie
Updated 23 May, 2025

Regional bonhomie

Trilateral cooperation and commercial activity can lead to prosperity for all involved, specifically Afghanistan.
Local government bill
23 May, 2025

Local government bill

THE PML-N leadership is known for concentrating powers in the hands of the top political office and governing ...
New normal?
Updated 23 May, 2025

New normal?

WHY can’t the PTI and its jailed leader decide what they want? Even while leverage is slipping from its hands, the...