PESHAWAR:Ministry of Energy (Power Division) Secretary Mr. Ali Raza Bhutta while addressing a webinar said that the Federal government has electrified 57 percent villages in the merged district during the last five years and the government was paying for all their electric bills.
He said”The challenges to provide electricity in the merged areas (MA) are different from the rest of the country because the population is displaced and the terrain is difficult, adding that the federal government is paying for all electric bills but that is not sustainable in the long-term.”
“We need to invest in off-grid solutions such as mini or micro hydel power plants and battery-backed solar projects. We also need to encourage residential consumers in the MA to pay utility bills.”
The webinar organized by United Nations Development Programme’s (UNDP) Merged Areas Governance Project (MAGP) here in collaboration with Pakistan Institute of Development Economics exploring the question, “What is the real cost of unreliable electricity in the Merged Areas?”.
It was told on the occasion that in the last five years, the number of villages in MA has increased with 57 percent having an electrified grid coverage. However, chronic load-shedding continues to adversely affect households with electricity being available on average for only 3 to 4 hours a day.
Dissecting the impact of prolonged power outages on the lives of people, Prof Michael Price said”The potential adverse effects can be broadly divided into two categories: stress and aspiration gaps, both of which can lead to poor decision-making that results in big consequences in the long-term.”
“Both these categories can make communities less vigilant about paying bills or add to the prevalent piracy of electricity, leading to a loss of revenue for the government,” he said.
In order to avoid lack of payment of bills from domestic consumers and piracy of electricity, the government should focus on high-quality delivery to high-demand consumers (industries), thereby contributing to the revenue model.
Prof Michael Price further said that policymakers need to consider the costs of an unreliable grid connection beyond the direct costs of installing a grid connection.
He recommended the government “consider solar mini-grids for new connections and solar backstops for existing connections rather than expanding or initiating upgrades in the formal grid”. Communities in the MA are increasingly opting for solar energy alternatives as 93% own one or more solar panels in the region.
“Therefore, community acceptance towards utilizing solar energy will not be an issue for the region,” he added.
Adding to the discussion, Dr. Haque said, “One of the options that can prove sustainable in the MA given the context of this region is the use of ‘pay as you go’ meters. Consumers can pre-pay for the number of watts of electricity they are going to use.”
Ministry of Energy Secretary Ali Raza Bhutta, Pakistan Institute of Development Economics (PIDE) Vice Chancellor Dr. Nadeem Ul Haque, and keynote speaker and to leading behavioural economist Professor Michael Price of Australian National University were among the panelists.