The consumption of electricity during the period of 1999-2011 increased only 33 percent in Khyber Pakhtunkhwa as compare to total national consumption of 69 percent during the same period. This has been stated in a study conducted by the Ilyas Bilour Centre for Research and Development, Sarhad Chamber of Commerce and Industry (SCCI). The study has been named 'Economic Stagnation of Khyber Pakhtunkhwa'.
The study says that on the other hand, electricity consumption during same period in Punjab grew by 76 percent, in Sindh by 56 percent and in Balochistan by 122 percent. The per capita provincial electricity consumption reveals a disproportionate increase and availability of electricity to the province. Based on consumption of 2010-11, the per capita electricity consumption of the country works out as 435 KWh. However, the province-wise per capital consumption offers an uneven consumption pattern. Per capital consumption in Punjab worked out as 493 KWh ie 13 percent higher than the national per capita consumption. The per capital electricity consumption in Sindh stood as 376 KWh ie 13.5 percent lower than the national consumption average. In case of KP, the per capita consumption stood as 367 KWh ie 15.6 percent lower than the national per capita consumption.
The study says that though, no data is available, but deliberations with industry reveals that one MW electricity consuming industrial project is instrumental to create up to 200 jobs in textile spinning/weaving sector, board and particles sector, upto 1000 jobs in labour intensive industry, eg pharmaceutical, textile stitching, power looms etc.
Comparative advantage of electricity to KP can accelerate industrial growth which can help to create substantial jobs to tame the rising unemployment in the province. Khyber Pakhtunkhwa is net exporting province of electricity by virtue of the hydropower resources.
If the differential of purchase price of hydel power from KP and selling of electricity to the consumers of KP at the same price as of other provinces (standard tariff) is worked out, the net profit of hydropower being paid to KP (around Rs 6 billion)/annum) would be a tiny amount vis-à-vis the amount its industrial consumers with TOD meters are paying to purchase the same electricity unit in excess of Rs 9.97 per unit, which originally was purchased by WAPDA/NTDC at Rs 1.50 or so.
Addition of transmission cost and losses would have made the "would be price" accordingly "topped up" and still costing a fraction of what is being paid by the consumers of KP. The average production of main hydropower projects of Khyber Pakhtunkhwa and their average selling rate: Malakand III-500GWH (equivalent to daily production of 57 MW-average) sold at Rs 6/ unit, Pehur canal-57 GWH (equivalent to daily production of 6.5 MW-average) sold at Rs 6/unit, Warsak-994 GWH (equivalent to daily production of 113 MW-average) Tarbela-14,959GWH (equivalent to daily production of 1707 MW-average).