Our government is all set to raise electricity rates once again, this time by Rs2.94 per unit. We will have to swallow this bitter pill to save the country from an impending financial default. However, it’s evident that the new government does not have any new solution to deal with the power sector’s mess other than taking the path of least resistance—further squeezing consumers who are already drowning under the heavy burden of an endless streak of electricity rate hikes.
High electricity rates are troublesome for many reasons, the most critical of which is their “affordability.” When these rates rise beyond a few percent of the households’ income, they start to have a punishing effect on their lives because they are compelled to cut corners on their other basic needs like food, health, and education. Such hikes also adversely affect the competitiveness of industrial, agricultural, and commercial consumers, leading to their…
