Why is electricity expensive? | Smuggling of dollar | Demonetizing currency

[_NOBODY_]

Why is electricity expensive? | Smuggling of dollar | Demonetizing currency​

In this episode, Uzair talks to Ammar Khan about the ongoing electricity and dollar crises in the country. We also touch on ways to resolve these issues and why they are linked to competence and willingness to make decisions.

Chapters:
00:00 Introduction
01:30 Understanding the power crisis
17:34 Dollar rate and smuggling
26:30 Demonetization and disrupting the system
35:14 NICVD and healthcare

 

[fitpOsitive]

Joty ki kami.

 

[maithil]

Anyone who suggests "simple solutions " to Pakistan energy sector is BSing . That includes this guy with his Thar Coal magic pill.

 

[epebble]

Anyone who suggests "simple solutions " to Pakistan energy sector is BSing . That includes this guy with his Thar Coal magic pill.

You can generalize it to anything concerning Pakistan. Anyone who suggests "simple solutions" can't get their head out of a wet paper bag.

Just a random selection of recent news:

Inflation forces people into debt cycle, asset sale

From Karachi to small towns in Punjab, households struggle to make ends meet; families skimp on food or enrol kids in seminaries instead of schools.

www.dawn.com

Pakistan’s other crisis

The country is sleepwalking into a human development disaster with serious consequences for its future.

www.dawn.com

Development spending stagnates amid fiscal challenges

Rs22.5bn spent in first two months, falling short of Rs950bn annual budget; PDM govt disbursed Rs61.3bn for lawmakers’ schemes within first 3 weeks of FY2024.

www.dawn.com

 

[_NOBODY_]

Anyone who suggests "simple solutions " to Pakistan energy sector is BSing . That includes this guy with his Thar Coal magic pill.

He is completely right about allowing other entities to buy electricity and sell it to other entities than the government. When the government is the sole entity allowed to buy and sell electricity in a country, it can have major drawbacks.

One of the primary drawbacks of this is the absence of competition in the electricity market. Without competition, there is less incentive for the government to keep prices low and improve the quality of service. Consumers don't have choices in terms of electricity providers, leading to inefficiencies and higher costs. There is less incentive for the government to innovate and improve its electricity services when there is no competition. This leads to outdated infrastructure and less efficient use of resources. Government monopolies are often slower to adopt new technologies than competitive providers. This is because they are not under the same pressure to innovate. Pakistan energy transmission systems are the finest examples of this, they create an insane amount of losses.

Also, his point about utilizing local coal is 100% correct. Kindly visit this thread for more information on the topic: https://pdf.defence.pk/threads/thar-coal-and-pakistans-energy-security.747286/

 

[Communism]

He is completely right about allowing other entities to buy electricity and sell it to other entities than the government. When the government is the sole entity allowed to buy and sell electricity in a country, it can have major drawbacks.

One of the primary drawbacks of this is the absence of competition in the electricity market. Without competition, there is less incentive for the government to keep prices low and improve the quality of service. Consumers don't have choices in terms of electricity providers, leading to inefficiencies and higher costs. There is less incentive for the government to innovate and improve its electricity services when there is no competition. This leads to outdated infrastructure and less efficient use of resources. Government monopolies are often slower to adopt new technologies than competitive providers. This is because they are not under the same pressure to innovate. Pakistan energy transmission systems are the finest examples of this, they create an insane amount of losses.

Also, his point about utilizing local coal is 100% correct. Kindly visit this thread for more information on the topic: https://pdf.defence.pk/threads/thar-coal-and-pakistans-energy-security.747286/

Electricity isn't like other markets.


When you privatize electricity distribution, you exponentially increase the capacity cost that must be paid to run redundant grids and to have idle "spare generating capacity".


If people are complaining about "capacity costs" now, wait until they are paying totally unsubsidized electricity with triple or quadruple the capacity cost for distribution, along with larger cost for production capcity cost, along with the profit margin required to keep them in business at all.


Add to that the fact that the current distribution grid has already been at least partially paid for, and that privatizing it would make it an additional capacity cost due to a "mark to market" re-rate of the capacity cost of the existing infrastructure to replacement cost plus profit margin.


Most states in the U.S. aren't even retarded enough to do private power distribution grids, other than Texas.


Have you heard of Enron?


This is Enron.

 

[_NOBODY_]

Electricity isn't like other markets.


When you privatize electricity distribution, you exponentially increase the capacity cost that must be paid to run redundant grids and to have idle "spare generating capacity".

I am not talking about privatising state-owned electricity distribution companies. My argument is that the state shouldn't be the only entity that should be allowed to distribute electricity.

 

[Communism]

I am not talking about privatising state-owned electricity distribution companies. My argument is that the state shouldn't be the only entity that should be allowed to distribute electricity.

The problem is people not paying their bills.


The only thing a private company would be able to do is inform the government if a customer doesn't pay.


If the government doesn't enforce much now, why would it enforce it differently if there is a private company asking them instead?


Is the company a Private Military Corporation that can do extra-legal enforcement?

 

[SoulSpokesman]

@Communism sb

Excellent post- presumably you are associated with the energy sector?

True fact is that the real cost of delivering power (unsubsidised) is not less than 10-12 cents and a regulated monopoly is with all its drawbacks still the best model for developing countries likes ours.

Regards

 

[Communism]

@Communism sb

Excellent post- presumably you are associated with the energy sector?

True fact is that the real cost of delivering power (unsubsidised) is not less than 10-12 cents and a regulated monopoly is with all its drawbacks still the best model for developing countries likes ours.

Regards

Simply research for the investments I take part in.

 

[maithil]

He is completely right about allowing other entities to buy electricity and sell it to other entities than the government. When the government is the sole entity allowed to buy and sell electricity in a country, it can have major drawbacks.

One of the primary drawbacks of this is the absence of competition in the electricity market. Without competition, there is less incentive for the government to keep prices low and improve the quality of service. Consumers don't have choices in terms of electricity providers, leading to inefficiencies and higher costs. There is less incentive for the government to innovate and improve its electricity services when there is no competition. This leads to outdated infrastructure and less efficient use of resources. Government monopolies are often slower to adopt new technologies than competitive providers. This is because they are not under the same pressure to innovate. Pakistan energy transmission systems are the finest examples of this, they create an insane amount of losses.

Also, his point about utilizing local coal is 100% correct. Kindly visit this thread for more information on the topic: https://pdf.defence.pk/threads/thar-coal-and-pakistans-energy-security.747286/

Multiple entities in theory is good idea. But who will own that distribution infrastructure? Will private entities create their own separate transmission and Distribution infrastructure or, use the existing ones ? How will those private entities collect money from consumers when the government is struggling ? They will have to rely on local Police for enforcement. All these issues might seem trivial, but put all of them together and include current bureaucratic hurdles, issue will not be so simple.

 

[_NOBODY_]

The problem is people not paying their bills.


The only thing a private company would be able to do is inform the government if a customer doesn't pay.


If the government doesn't enforce much now, why would it enforce it differently if there is a private company asking them instead?


Is the company a Private Military Corporation that can do extra-legal enforcement?

Electricity theft is definitely an issue but let's pretend for a moment that it doesn't exist. If a sound policy is somehow put in place for this, why is this a bad idea?

Multiple entities in theory is good idea. But who will own that distribution infrastructure? Will private entities create their own separate transmission and Distribution infrastructure or, use the existing ones ? How will those private entities collect money from consumers when the government is struggling ? They will have to rely on local Police for enforcement. All these issues might seem trivial, but put all of them together and include current bureaucratic hurdles, issue will not be so simple.

Of course, the issue isn't simple but if the government muster enough willpower it can be done. Forget companies, I should be allowed to sell the excess electricity that I produce to my neighbours.

 

[Communism]

Electricity theft is definitely an issue but let's pretend for a moment that it doesn't exist. If a sound policy is somehow put in place for this, why is this a bad idea?

Of course, the issue isn't simple but if the government muster enough willpower it can be done. Forget companies, I should be allowed to sell the excess electricity that I produce to my neighbours.

https://www.energy.gov/indianenergy/articles/united-states-electricity-industry-primer

https://web.archive.org/web/20230314134614/https://www.e-education.psu.edu/eme801/node/530

The whole topic of energy isn't really something that can be understood with surface level knowledge.


For me to tell you why and have you understand it, you would already have to know yourself.

 

[Samlee]

Finish tds and allow discos to set their own tariffs without nepra's meddling also allow private companies to sell power leasing the disco infrastructure like private isp lease ptcl infrastructure and offer electricity to people by installing prepaid meters

 

[maithil]

https://twitter.com/x/status/1704396886919008586