The main causes of electricity crisis in Pakistan have been identified as circular debt, the insufficient capacity of electricity production and its distribution. Further, there are cheaper alternatives of electricity production. There is a need to explore the proposed alternatives rather than stick with the fossil fuel energy plants. The causes of acute shortage of electricity in Pakistan are:
- Lack of Energy Conservation Program: Wastage of energy is a serious problem and if this is kept in check, then this problem can be controlled to quite an extent. Currently, the elite class is consuming maximum energy even with prior knowledge and understanding. When we talk about high rate of illiteracy and the masses not paying heed to its proper and careful usage. However, what we see is that the elite class is using it for its luxury. The need of the hour is energy conservation programs.
- Cost of Fuel: The high cost of fuel i.e. the price of crude has increased from $40 to $140 a barrel. This obscene rise in cost means that the thermal source of production is resulting in exorbitant prices. As WAPDA and KESC procure energy on high cost, hence, they will sell it at a higher price too. The viable solution is to increase the energy cost. The government will need to monitor the theft of electricity and make sure it doesn’t prevail.
- Monopoly: WAPDA and KESC have a monopoly in this business. The private sector should be given the permission to install power plant. Through this way rates will be decided on a competitive basis and moreover constant power supply will be ensured.
- Coal Usage: Pakistan is blessed with abundant amount of coal. This alternative to use cola for power generation will prove feasible in the long run. Plus it will cater to the ever increasing demand.