The recent decision by the power division and the power regulator to increase the national uniform electricity tariff has ignited serious concerns among middle-class citizens. While the commitment to the International Monetary Fund (IMF) cannot be overlooked, the collateral damage to the already struggling middle class during an economic slowdown is alarming.
The sheer magnitude of the price hike, up to 26% (Rs7.5 per unit), has left industrial bodies fearing the closure of businesses and substantial employment losses. The industry, already at its last leg of survival, cannot sustain such a massive burden and risks becoming uncompetitive in the global market.
Encouraging industries and households to adopt energy-efficient practices and technologies can lead to substantial savings in electricity consumption. By offering incentives and subsidies for energy-efficient appliances and technologies, the government can motivate consumers to reduce their power consumption. Moreover, implementing energy audits and setting energy-saving targets for industries can further enhance efficiency and alleviate the impact of tariff hikes on businesses and consumers alike.
Embracing solar, wind, and hydropower as alternative energy sources can diversify the energy mix and reduce dependence on costly fossil fuels. By providing financial incentives and favourable regulations for private investment in renewable energy projects, the government can accelerate the transition to cleaner and more affordable energy solutions. Not only will this reduce the burden on consumers, but it will also position the country as a leader in the global fight against climate change.
Alongside investments in energy efficiency and renewable energy, the government must implement conservation initiatives to manage electricity consumption effectively. Launching public awareness campaigns to promote responsible energy use and conservation can go a long way towards reducing overall electricity demand. Encouraging load-shifting practices, such as off-peak electricity usage, can ease the strain on the power grid during peak hours and potentially avert the need for further tariff increases.
The government should focus on improving the financial health of power distribution companies by reducing losses and increasing collections. Implementing better billing and metering systems, cracking down on electricity theft, and streamlining administrative processes can enhance revenue generation and lessen the burden on honest consumers. Instead of burdening consumers, the government should prioritise addressing inefficiencies in power generation, transmission, and distribution. Raising accountability standards and improving governance within the power sector can lead to a more sustainable and self-sufficient energy ecosystem.