During FY2023 (July-March), total electricity consumption was recorded at 84,034 GWh. The household sector is the largest consumer of electricity, consuming 39,200 GWh (46.6 per cent), followed by the industrial sector with 23,687 GWh (28.2 per cent). Moreover, agriculture and commercial sectors consume 6,906 GWh (8.2 per cent) and 6,576 GWh (7.8 per cent), respectively, whereas the electricity consumption in other sectors (streetlights, general services, and other government) is 7,664 GWh (9.1 per cent), according to the officials of Government of Pakistan.
| Commercial energy consumption in Pakistan | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fiscal Year | Electricity (GWH) | ||||||||
| Traction | Household | Commercial | Industrial | Agricultural | Street Lights |
General Services |
Other Govt. |
Total | |
| 2010-11 | 1 | 35,885 | 5,782 | 21,207 | 8,971 | 456 | – | 4,797 | 77,099 |
| 2011-12 | 1 | 35,589 | 5,754 | 21,801 | 8,548 | 478 | – | 4,590 | 76,761 |
| 2012-13 | – | 36,116 | 6,007 | 22,313 | 7,697 | 457 | – | 4,199 | 76,789 |
| 2013-14 | – | 39,549 | 6,375 | 24,356 | 8,290 | 458 | – | 4,381 | 83,409 |
| 2014-15 | – | 41,450 | 6,512 | 24,979 | 8,033 | 441 | – | 4,403 | 85,818 |
| 2015-16 | – | 44,486 | 7,181 | 25,035 | 8,526 | 459 | – | 4,744 | 90,431 |
| 2016-17 | – | 48,698 | 7,856 | 24,010 | 9,221 | 484 | – | 5,260 | 95,529 |
| 2017-18 | – | 54,028 | 8,606 | 27,468 | 10,128 | 475 | – | 6,222 | 106,927 |
| 2018-19 | – | 53,685 | 8,513 | 28,760 | 9,809 | 451 | 1 | 8,240 | 109,461 |
| 2019-20 | – | 55,963 | 7,975 | 25,708 | 9,757 | 385 | 256 | 8,328 | 108,371 |
| 2020-21 | – | 58,722 | 8,501 | 29,954 | 10,238 | 413 | 368 | 8,621 | 116,816 |
| 2021-22 | – | 56,202 | 8,652 | 31,600 | 10,247 | 387 | 427 | 3,748 | 111,263 |
| (July-March) | |||||||||
| 2021-22 | – | 39,833 | 6,217 | 22,734 | 7,222 | 281 | 298 | 6,346 | 82,931 |
| 2022-23 | – | 39,200 | 6,576 | 23,687 | 6,906 | 376 | 2,693 | 4,595 | 84,034 |
In 2024, it is also important to note that worldwide energy consumption will grow by 1.8 per cent, mainly driven through strong demand in Asia. Despite still-high prices and unsolved supply chain disruptions, demand for fossil fuels will reach record levels, but demand for renewable energy will grow by 11 per cent. Electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026. Data centres are significant drivers of growth in electricity demand in many regions. After worldwide consuming an estimated 460 terawatt-hours (TWh) in 2022, data centres’ total electricity consumption in 2026 could reach more than 1,000 TWh. This demand is roughly equivalent to the electricity consumption of Japan. Updated regulations and technological improvements, counting on efficiency, will be crucial to moderate the surge in energy consumption from data centres.
Sources recorded that our country’s power sector circular debt reached Rs2.635 trillion during the first seven months of (July-January) 2023-24 as compared to Rs2.626 trillion during the corresponding period of 2022-23. Total payables according to sources, to the power producers reached Rs1,760 trillion, followed by Rs111 billion to generation companies (Gencos) payables to fuel suppliers, and Rs765 billion as the amount parked in Pakistan Holding Limited (PHL) in FY2024. The unclaimed subsidies were reduced by zero in FY2024. Meanwhile, the independent power producers’ (IPPs) interest charges on delayed payment were recorded at Rs72 billion during the seven months of 2023-24.
The experts in the sector analysed that energy is an integral component of the economy and is considered essential for nearly all human activities. Electricity is central to the functioning of modern societies and economies – and its significance is only growing as technologies that run on electricity, like electric vehicles and heat pumps, become increasingly popular. Power generation is presently the largest world source of carbon dioxide (CO2) emissions, but it is also the sector leading the transition to net zero emissions by the rapid expansion of renewable energy sources like solar and wind power. Ensuring consumers have secure and affordable access to electricity while also reducing worldwide carbon dioxide (CO2) emissions is one of the core problems of the energy transition.
Sources also recorded that the pending generation cost in Pakistan, which is made up of quarterly tariff adjustments (QTA) and fuel charge adjustments (FCA), grew to Rs214 billion in July to January 2023-24 from Rs139 billion during the corresponding period of 2022-23. The dues pending on the part of K-Electric declined from Rs102 billion to negative Rs11 billion. However, power distribution companies’ (Discos) losses because of inefficiency grew to Rs86 billion during the seven months of 2023-24 from Rs69 billion in 2022-23. Discos under recoveries have also grown to Rs198 billion during July to January 2023-24 from Rs1170 billion in 2022-23. The amount of other adjustments (prior year recovery, etc.) has declined to 116 billion from Rs210 billion during the corresponding period last year. Payables to power producers grew by Rs5 billion because of withdrawal by FBR on April 23, whereas Rs336.9 billion is receivable from K-Electric as of January 2024.