According to Reuters, Hub Power Company Limited (PSX: HUBC) anticipates another drop in Pakistan’s power consumption this year, citing increased tariffs and sluggish industrial activity as contributing factors.
Muhammad Saqib, HUBC’s Chief Financial Officer, highlighted at the Energy Summit 2024 conference in Karachi that industrial growth remains stagnant due to escalating tariffs, impacting power usage.
The decline in power consumption carries significant implications for Pakistan’s economy. Saqib stressed that insufficient upgrades to the country’s power grid result in inefficient supply patterns, leading to the reliance on costly furnace oil over cheaper alternatives like natural gas.
READ MORE — Decline in Power Generation as Fuel Costs Surge 23% in January 2024
Efforts to reduce furnace oil usage for power generation and boost natural gas-fired electricity production are hindered by grid limitations. Consequently, coal-fired power generation and coal imports are expected to be constrained in the upcoming year. HUBC projects that its power plants will require less imported coal than their full capacity demands due to grid constraints.
Data from energy think tank Ember indicated a substantial decrease in power demand in Pakistan last year. If this trend persists in 2024, it would mark the first consecutive annual decline in electricity usage in 16 years.
