Honourable Prime Minister of Pakistan
@PakPMO,
Pakistan’s rapid energy transition has moved ahead of its policy framework.
Industrial baseload in (especially in Gas Sector) is being forced to carry the cost of seasonal cooling and heating peaks. That is not reform; it is economic amputation.
It is like sacrificing a healthy limb to reduce body fat. Sir, the real fat lies in underutilized capacity payments, planning and governance failures, the Sui return-on-asset business model, cross-subsidies, bureaucratic inefficiencies, high UFG, RLNG diversion and actualisation distortions, circular debt, weak cost causation and distorted price signals.
Reform should remove these structural inefficiencies, not transfer their cost to productive industry.
Solar has become Pakistan’s single largest source of electricity, contributing around 35% of total generation. Cumulative solar PV module imports have reached nearly 60 GW, of which an estimated 50 GW is installed, generating around 54 TWh annually.
@jackprandelli, the original map required correction, which I have updated.
Solarisation has reduced daytime grid demand, but it has not removed fixed capacity costs or the evening peak. With nearly 73% of power-system costs fixed, these costs are now being recovered from fewer grid units, increasing the burden on remaining consumers.
The deeper issue is cost causation.
LNG cargoes imported to meet evening and midnight residential cooling load should not be socialised into industrial tariffs without dispatch data, cargo-wise reconciliation and sector-wise cost-causation review. Under Pakistan’s pooled power-generation system, the cost of hydropower, nuclear, coal, indigenous gas, RLNG and other sources is blended into the Energy Purchase Price and fuel-cost adjustments. This hides who created the cost and who ultimately pays for it.
Industry then carries a double burden.
On the gas side, industrial captive consumers face high captive-gas tariffs with over PKR 1,800/MMBtu embedded cross-subsidy, blended recovery of indigenous gas and RLNG costs, and the punitive Off-Grid Captive Levy. The effective delivered gas price can change with the allocation mix between indigenous gas and RLNG, weakening tariff transparency and OGRA tariff finality.
On the power side, if industry is pushed onto the grid, it also pays capacity charges and pooled imported-fuel costs, including RLNG used for evening and late-night cooling demand that industry did not create.
In effect, productive industry is being made to absorb stranded costs in both the gas and power sectors.
Pakistan needs competitive gas markets, removal of cross-subsidies from industrial gas tariffs, and a grid that wins industrial demand through affordability and reliability, not coercion.
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