ISLAMABAD: Federal Minister for Energy Awais Leghari announced that the government is working to bring the price of electricity down to Rs10 per unit within the next 8 to 10 months.
He stated that the government will save Rs411 billion annually after the termination of contracts with five independent power producers (IPPs).
Addressing a press conference in Islamabad, Leghari emphasized that reducing electricity prices is the government’s top priority. He explained that various steps were being taken, including consultations with power generation companies, to achieve this goal.
“In the first phase, we initiated discussions with five IPPs and reviewed their agreements. Through mutual consultation, we reached a consensus,” Leghari said.
He said that the government plans to hold similar discussions with other IPPs, as further reforms in the energy sector were necessary.
The minister also mentioned plans to introduce a programme aimed at increasing electricity usage during the winter months, noting that the benefits of better governance and policies were now reaching the public.
Leghari further explained that electricity could be bought and sold in a manner similar to shares, and that a new institution, recently approved by the cabinet, will soon be established to facilitate this.
“We are creating a more open environment for the buying and selling of electricity, so buyers will no longer be solely dependent on the Central Power Purchasing Agency,” he added.
He noted a reduction in losses among distribution companies (DISCOs), although Hyderabad, Quetta, and Sukkur DISCOs experienced losses over the past three months.
Leghari also revealed that the government has to pay Rs71 billion to five IPPs but it has been agreed that they will no longer receive capacity payments in the future.