Power Division Introduces Peak Hours Relief Strategy to Stabilize Electricity Prices

Power-Division1

Islamabad: The Power Division spokesperson has issued an important statement outlining developments under the government’s Peak Hours Relief Strategy, focusing on electricity pricing, demand management, and system efficiency.

According to the spokesperson, sustained reforms and operational improvements have contributed to a reduction in electricity prices for consumers nationwide. From July to February, the average tariff decreased by 71 paisa per unit despite rising global fuel costs, resulting in an overall relief of Rs 46 billion.

The spokesperson said this relief has been achieved through structural reforms, targeted subsidy measures, strict enforcement of the merit order, improved planning, and more efficient system operations. Prioritisation of low-cost generation sources, better utilization of generation capacity, and improvements in transmission and administrative efficiency have helped reduce system losses and enhance overall performance.

Despite challenging global energy conditions, the spokesperson confirmed that the country’s power generation system remains stable and capable of meeting electricity demand as required.

However, he noted that the primary challenge arises during peak hours between 5:00 pm and 1:00 am, when electricity demand increases significantly due to reduced hydel generation. Meeting this demand through expensive fuel sources could result in higher electricity tariffs.

To address this issue, the government has introduced a controlled load management plan, under which electricity supply may be temporarily suspended for approximately 2.25 hours daily during peak hours. The measure is intended to reduce reliance on costly fuels and prevent a sharp increase in tariffs.

The spokesperson clarified that this initiative is being closely monitored under the supervision of the Prime Minister, with clear instructions that electricity prices must be kept from rising sharply. Even with partial use of furnace oil, the government is taking all possible steps to minimise the impact on consumers.

In this regard, 80 MMCFD of local gas has been diverted to the power sector, helping avoid an estimated increase of around 80 paisa per unit and reducing the need for additional load management.

According to the statement, the limited peak-hour load management is aimed at preventing a potential increase of around Rs 3 per unit. Without these measures, electricity prices could have increased by Rs 5 to Rs 6 per unit, the spokesperson added.

Distribution companies have been instructed to issue feeder-wise outage schedules to ensure transparency and consumer awareness. The government has emphasized that no unscheduled load shedding will be allowed, and any local faults will be communicated to consumers by the relevant offices.

Reiterating the government’s commitment, the spokesperson said every effort is being made to minimise the impact of global energy challenges on the public. The strategy is designed to provide maximum possible relief while ensuring system stability.

He further clarified that the measure should not be considered traditional load shedding, but rather a “Peak Relief Strategy” aimed at controlling cost escalation during high-demand hours.

The government also called for coordinated efforts between federal and provincial authorities, including timely closure of commercial markets during peak hours, to help reduce demand and further limit pressure on electricity prices.

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