Making electricity affordable again

The country is stuck in a low-growth trap. A shift in the economic model from consumption to export-oriented growth necessitates the availability of affordable electricity. The age-old practice of passing on prices to the consumer will only add more burdens on the consumer and further restrict growth. Electricity consumption per capita has consistently declined over the last five years, wherein prices have increased by more than 100 per cent. We have reached a point where any further increase in prices will only further constrain growth. Reducing electricity prices remains one of the most critical policy measures to unlock growth in the short run. It is estimated that for every 10pc increase in price, consumption reduces by roughly 3pc. Compound the same over many years, and the results are detrimental for an economy that is supposed to grow at mid-single-digits to meet its growth potential.