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An Assessment of Electricity Tariff Reforms in Karachi City: The City of Light (Article)

Author

Listed:
  • Fouzia Sohail

    (Assistant Professor/Research Economist, Applied Economics Research Centre, University of Karachi.)

  • Ambreen Fatima

    (Senior Research Economist, Applied Economics Research Centre, University of Karachi.)

Abstract

Providing reliable access to electricity to every citizen is a responsibility of the government, which is also considered an imperative condition for improving the life of every household in a country. This study thus aims to find the electricity accessibility as well as affordability condition of the households of Karachi. To collect in-depth electricity information at the household level, this study surveys Karachi city through a questionnaire design. The study surveyed 467 randomly selected households from 18 towns in Karachi. The accessibility and affordability indicators of electricity have been examined using descriptive analysis. Findings from the survey data reveal that although tariff rates are still subsidised for lower consumption households, additional charges such as government charges, TVL fees, fuel adjustment charges, etc., constitute a significant proportion of total electricity bills. The study also recognises households’ cognitive and behavioural aspects of energy use by incorporating these modules in the survey questionnaire. Hence, numerous viable policy options are recommended in the study to successfully implement reforms without compromising the social aspects.

Suggested Citation

  • Fouzia Sohail & Ambreen Fatima, 2022. "An Assessment of Electricity Tariff Reforms in Karachi City: The City of Light (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(2), pages 259-274.
    • Handle: RePEc:pid:journl:v:61:y:2022:i:2:p:259-274
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    References listed on IDEAS

    as
    1. Samad,Hussain A. & Zhang,Fan, 2018. "Electrification and Household Welfare : Evidence from Pakistan," Policy Research Working Paper Series 8582, The World Bank.
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    3. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
    4. Molly Lipscomb & A. Mushfiq Mobarak & Tania Barham, 2013. "Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 200-231, April.
    5. Samad,Hussain A. & Zhang,Fan, 2016. "Benefits of electrification and the role of reliability : evidence from India," Policy Research Working Paper Series 7889, The World Bank.
    6. Thomas Walker & Sebnem Sahin & Mohammad Saqib & Kristy Mayer, 2014. "Reforming Electricity Subsidies in Pakistan : Measures to Protect the Poor," World Bank Publications - Reports 21569, The World Bank Group.
    7. repec:aen:journl:33-1-a07 is not listed on IDEAS
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