Federal Energy Minister Awais Leghari announced that ongoing talks with the International Monetary Fund (IMF) could lead to a reduction in electricity tariffs by Rs 10 to Rs 12 per unit.
Speaking to the media in Parliament, Leghari revealed that renegotiations with the Independent Power Producers (IPPs) have already saved the country Rs 1,100 billion, and those savings benefit the general public through lower prices of electricity.
The minister added that the government is now focusing on reviewing agreements with state power plants, a move that is expected to generate additional savings for consumers. “We are submitting 15 more IPP contracts to cabinet for review and expect even more savings for the public,” he said.
Leghari also commented on the current issue with K-Electric, which is demanding a huge sum under its multi-year tariff.
“We believe this tariff is not justified and should be reduced. NEPRA will take a decision that serves the interest of the people,” he said.
Regarding efforts to curb electricity theft, particularly in Khyber-Pakhtunkhwa (KP), Leghari explained that despite numerous meetings with the provincial government, progress had been slow. “Our company faced additional losses of Rs 6 billion due to continuous theft and lack of cooperation,” he said.
Looking ahead, the minister confirmed that talks are taking place with a further 16 PPIs, with the aim of reviewing contracts to further reduce electricity costs. He also mentioned that government power plants would soon undergo a review of their return on equity, which could further influence future tariffs.
Electricity rate reduced by 75 paisa
The National Electric Power Regulatory Authority (Nepra) recently reduced the electricity tariff by up to 75 paisa per unit for consumers of former power distribution companies Wapda (DISCO) and K-Electric due to adjustment in fuel tariffs (FCA). .
The power sector regulator reduced the tariff up to Rs 0.7556 per unit for DISCOs due to changes in fuel rates in November 2024.
For K-Electric consumers, it slashed the price of power by Rs 0.4919 per kilowatt-hour (kWh) by October 2024. Rebate for the tariff reduction will be made in January 2025 electricity bills .
When discussing a tariff application of the DISCOs, the regulator said that the National Transmission and Dispatch Company (NTDC) reported provisional transmission and transformation (T&T) losses of 244,158 gigawatt hours (GWh), equivalent to 2.946%, based on the energy delivered to the NTDC system during November 2024.
Additionally, NTDC reported T&T losses of 19,528 GWh, or 3,391%, for the Pak Matiari-Lahore Transmission Company (PMLTC) high-voltage direct current line.
NTDC is allowed T&T losses of 2.639% at 500 kilovolt and 220 kV levels. For PMLTC, T&T allowable losses are up to 4.3%.
In this way, by November 2024, T&T losses of 263,686 GWh were verified for the NTDC system in the 500kV and 220kV networks and for PMLTC, keeping them within permissible limits. These losses were included in the monthly FCA calculation.
