Govt expects tariff relief following review of independent power producers
Federal Minister for Power Awais Ahmad Khan Leghari announced that relief in electricity tariffs is anticipated in the coming weeks, as the government has completed its review of Independent Power Producers (IPPs) and state-owned power plants.
Speaking to the Senate Standing Committee on Power, Leghari stated that the committee has received all necessary information regarding the IPPs, and he promised to share positive news with the public soon.
This announcement comes as the Prime Minister Shehbaz Sharif-led coalition government faces criticism over high electricity tariffs, which have further strained consumers already grappling with inflation.
In response to concerns regarding the IPPs, the government is renegotiating contracts to address “unsustainable” electricity prices that are among the highest in the region.
Additionally, the Power Division recently announced a relief of up to Rs2.65 in electricity bills for September due to fuel adjustments.
Combined with other measures, consumers using up to 300 units would see a reduction of Rs2.19 per unit.
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Leghari elaborated that the task force conducted a detailed assessment of the return on equity, operation and maintenance costs, and outstanding dues related to the IPPs. He assured the Senate committee that all work was conducted with the confidence of the IPPs.
The committee also addressed public concerns about electricity over-billing, highlighted by Senator Palwasha Muhammad Zai Khan, who criticized the indifference of officials towards consumer complaints.
Senator Mohsin Aziz, the committee chair, emphasized the need for urgent action against electricity theft and over-billing, while also requesting clarification on tariff structures for bagasse-based IPPs.
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