Unveiling the Truth Behind K-Electric’s Expensive Electricity Generation
The Secretary of the Power Division dropped a bombshell during a recent meeting, stating that K-Electric is producing costly electricity, mainly derived from thermal power sources. Despite the exorbitant production costs, the government continues to provide subsidies to the power company.
With K-Electric recording a whopping loss of Rs 30 billion and Karachi demanding 3,500 MW of electricity, concerns have been raised about the sustainability of this model. Committee member Qamar-ul-Islam Raja highlighted the burden on the government due to these subsidies, while the CEO of K-Electric defended the subsidies as tariff differentials.
However, questions surrounding the effectiveness of K-Electric’s privatization were raised, especially in light of the disappointing outcomes. The Secretary confirmed that all electricity generated by K-Electric comes from thermal sources, warning of a significant rise in unit cost without government support.
As doubts loom over the benefits of privatization, it is evident that the current electricity generation model employed by K-Electric is posing financial challenges for both the company and the government.