Pakistan's largest private utility Hub Power Co Ltd (Hubco) expects power consumption in the country to fall in 2024  due to higher tariffs and tepid industrial activit. Power demand in Pakistan plunged last year by nearly a sixth and a decline in 2024 would mark the first time in 16 years that annual electricity use has fallen consecutively, data from energy think tank Ember showed.  According to Hubco Chief Financial Officer Muhammad Saqib, there is demand destruction on the industry side because the manufacturing sector  is not growing.      Power consumption is a significant economic indicator in the developing economy and the expected decline this year underscores challenges facing the newly elected government in Pakistan. the significant increases in consumer tariffs have convinced  people to adopt  saving strategies on fuel and energy.       Middle class households are still feeling the impact of the International Monetary Fund's bailout of Pakistan last year, which contributed to rising retail prices including fuel and electricity charges.      Power cuts are frequent in Pakistan, especially in far flung rural areas, due to grid issues, delays in importing fuel and hard currency shortages. The frequency of such outages have reduced in the recent months.   The utility's CFO  expects a failure to carry out long-pending upgrades to Pakistan's electricity grid would continue to contribute to inefficient power supply patterns, including the use of expensive and more polluting furnace oil despite availability of cheaper alternatives such as natural gas.      Saqib said grid constraints will also likely curb coal-fired power generation and hence coal imports.      Hubco's own power plants would require 3.5 million metric tons of imported coal a year if power plants run at full capacity, but the company does not foresee imports exceeding 750,000 tons this year, he said.  (ICE ISLAMABAD)

Fonte notizia: reuters