AS the cost of living continues to soar, the recent announcement by the Central Power Purchasing Agency (CPPA) seeking a substantial increase in fuel charges for electricity consumption adds yet another layer of financial strain on already struggling consumers. This proposed hike comes at a time when households are grappling with escalating electricity and gas bills, pushing many to the brink of financial distress.
The CPPA’s request for a massive Rs7.13 per unit increase in fuel charges, aimed at generating an additional Rs57 billion for power distribution companies, underscores the mounting challenges within the energy sector. Despite promises of stability and affordability, the inability of the power sector bureaucracy to accurately forecast fuel costs raises serious questions about its effectiveness and accountability. This increase in fuel cost adjustment (FCA) comes on top of existing tariff hikes, compounding the financial burden on consumers. With a 26% increase in the annual base tariff and an additional 18% hike under the quarterly tariff adjustment, households are facing excessive bills, even during months of minimal energy consumption, such as the peak winter period. Moreover, the escalation in FCA is particularly alarming given that imported fuel prices, including furnace oil and LNG, remained relatively stable in January. In parallel, the recent uptick in gas prices adds another layer of strain on household budgets. With the cost of both electricity and gas on the rise, the financial burden on the common man is reaching unsustainable levels. Even the middle class, traditionally more resilient to economic shocks, finds itself squeezed as energy bills eat into disposable incomes. In the light of these challenges, it is imperative for the caretaker government to intervene and prioritize the interests of consumers. Rather than burdening them with further tariff hikes, the focus should be on enhancing efficiency within the energy sector. This includes measures to improve the transmission system, reduce line losses and combat pilferage. It is unjust to penalize honest consumers for systemic inefficiencies and failures. Instead, efforts should be directed towards enhancing transparency, accountability and affordability within the energy sector.
