ISLAMABAD:
As the year comes to an end, Federal Minister for Power (Power Division) Sardar Awais Ahmad Khan Leghari on Saturday stated that electricity tariffs had come down by up to Rs 11 per unit during the last nine months.
The minister shared the government’s major achievements, ongoing initiatives in the power sector and reforms in electricity distribution.
“The government is moving towards privatization and concession models, preceded by the hiring of independent directorates for distribution companies,” he said at a press conference.
Regarding independent power producers (IPPs), the minister revealed that agreements with five IPPs had been terminated in the first phase, achieving national savings of Rs 411 billion and annual savings of Rs 70 billion.
“In the second phase, deals were closed with eight bagasse-based PPIs, resulting in annual savings of Rs 8.826 billion and national savings of Rs 238.22 billion. Negotiations are underway with 16 others PPI and are expected to save Rs 481 billion,” he added.
He said the power sector has shown marked improvement in electricity prices and the average electricity price has declined to Rs 44.04 per unit from Rs 48.70 per unit in June 2024, marking a reduction of 4.66 rupees.
It elaborated on the decline in industrial electricity prices, which fell to Rs 47.17 per unit from Rs 58.50 per unit in June 2024, reflecting a reduction of Rs 11.33 per unit.
Leghari explained that the government was shifting the costs of circular debt from electricity bills to the national debt to ease the burden on consumers.
Through innovative policies, substantial investments and bold reforms, he said, significant progress has been made to ensure energy sustainability, reduce electricity costs and boost economic growth.
Giving an overview of the reforms undertaken in the last nine months, the minister said: “We have eliminated Rs 150 billion in cross-subsidies from the industrial sector, a move that has boosted industrial growth and job creation in Pakistan.” .
He also revealed the ongoing improvements in the transmission sector, including the division of the National Transmission and Dispatch Company (NTDC) into three entities: the National Network Company of Pakistan for efficient and reliable transmission, the Management and Development Company of Energy Infrastructure for project management and the Independent System and Market Operator to establish a competitive and transparent electricity market.
He highlighted the solarization of agricultural tubewells in Balochistan. “We are solarizing 27,000 tubewells at a cost of Rs 55 billion, with the federal government contributing 70 per cent.”
