A recent report on Pakistan’s energy sector has revealed a troubling reality for electricity consumers: billions of rupees are being paid for power plants that often remain unused.
According to the findings, electricity generation in Pakistan declined by nearly 9% between FY22 and FY25. Despite lower production, capacity payments — fixed charges paid to power plants to ensure they remain available — have increased significantly and now account for 61% of total power purchase costs.
In simple terms, consumers are paying more money even when electricity is not being generated.
The report highlights that many thermal power plants are operating far below their actual capacity, yet their operational costs continue to be passed on to the public through electricity bills.
Energy experts warn that the current system is becoming increasingly unsustainable for ordinary consumers already struggling with inflation and rising living costs. They stress that without structural reforms, electricity bills may continue climbing despite declining power generation.
The issue has once again sparked debate over inefficiencies in Pakistan’s power sector and the urgent need for long-term policy improvements.
Experts believe reforms focused on improving efficiency, reducing unnecessary capacity payments, and modernizing the energy system could help ease the burden on consumers in the future.
For now, however, millions of Pakistanis continue to face the impact of rising electricity costs while questions remain over the effectiveness of the country’s power infrastructure.
