Energy democracy can resolve power crisis in Pakistan

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Public ownership of electricity be part of national agenda
Liberalization of energy companies failed in many countries

The Pakistan Economy Watch (PEW) on Thursday said introducing energy democracy in Pakistan can ensure efficiency, investment, and reduced tariffs to resolve energy crisis.
The private energy market has failed in many countries to deliver due to constant price hikes and deceptive practices which is result of too much focus on maximizing profits which calls for increased democratic control of the energy, it said.
The privatization and liberalization of the energy companies has resulted in eroded public confidence which was not the aim of the policymakers, said Dr. Murtaza Mughal, President PEW.
He said that objectionable practices of private energy corporations has attracted widespread criticism and questioned policy to allow these firms to dominate our energy future.
Pakistan can also introduce participatory forms of decision-making enabling people to be involved in the vital economic decisions that shape their lives, he added.
Dr. Murtaza Mughal said that energy democracy cannot be achieved without public ownership of the means of generation and distribution of energy.

He said that state-owned corporations are guilty of mismanagement and inefficiency but outright sale of all bleeding entities may not be in the national interest.
Like many developed countries, Pakistan can establish energy suppliers owned by the public on a local, regional and co-operative basis.
The companies which are not wholly driven by profit will abstain from trickery, attract investment, infuse confidence, offer fair and simple energy tariffs, help those least able to pay bills and reinvest major portion of profits back into the local communities.
Public ownership would be cheaper because there would be no need to pass on profits to shareholders and for the reason that government can borrow more cheaply than private companies and it is always inclined to long-term planning.
Dr. Murtaza Mughal said that nearly half of Germany’s renewable energy capacity is owned by citizens, 80 percent of wind turbines are owned by families or co-operatives in Denmark while many cities in the UK are setting up municipal energy companies.
All residents and business buy their energy from community-owned institution in Nebraska while profits are used to support social services and the education system, he said.
Major German cities decided not to privatize electricity generating companies back in 1990 while many countries in developed world are following their model after failing to achieve goals by selling asetts to private sector.

In: UncategorizedAuthor: pakistaneconomywatch