Federal Minister for Energy Owais Leghari has expressed hopes that electricity rates could be reduced by up to 50 rupees per unit. He stated that talks with the International Monetary Fund (IMF) are ongoing, and there is potential to lower electricity prices by 10 to 12 rupees per unit.
During a meeting of the National Assembly’s Standing Committee on Energy, Owais Leghari shared that the impact of negotiations with Independent Power Producers (IPPs) is now reaching the common man.
Leghari emphasized that the government aims to reduce electricity prices by 10 to 12 rupees per unit, with a long-term goal of cutting rates by 50 rupees. The ministry is reviewing the operations of 8 Bagasse plants and is also revisiting agreements for an additional 16 plants.
He mentioned that electricity prices have already decreased, resulting in savings of 1.1 trillion rupees. The government is also bringing 15 more IPP agreements to the cabinet for review. Additionally, the next step involves revising agreements for state-owned power plants.
Leghari also noted that discussions with Khyber Pakhtunkhwa’s Chief Minister Ali Amin regarding the elimination of “kunda culture” have taken place, criticizing the poor performance in addressing illegal electricity connections in the province.
The Energy Minister pointed out that K-Electric has requested a large sum under the multi-year tariff framework, which, according to him, is unjust and will adversely affect consumers in Khyber Pakhtunkhwa.
He added that the focus will soon shift to reviewing the return on equity for government power plants, and the issue of captive power plants is expected to be resolved by the end of this month. Electricity for domestic consumers has already become 4 rupees cheaper, he concluded.
