Maps
Magazine

TRADE & ECONOMY

Energy Minister Owais Leghari: Electricity to Become Cheaper Before Next Summer
Federal Energy Minister Owais Leghari promises cheaper electricity before next summer, with reduced tariffs, solar energy growth, and Rs 638 billion savings from IPP contract renegotiations.
ND
by News Desk
2024-12-28
Energy Minister Owais Leghari: Electricity to Become Cheaper Before Next Summer

Federal Minister for Energy Owais Leghari has pledged significant reductions in electricity prices before the next summer season, highlighting a series of reforms and accomplishments aimed at addressing the challenges in Pakistan’s power sector.

During a press conference in Islamabad, the energy minister detailed efforts to rectify systemic issues and provide relief to consumers, contrasting his government’s performance with that of the previous Pakistan Tehreek-e-Insaf (PTI) administration.

Major Announcements and Reforms

Electricity Price Reductions

  • The government has successfully lowered electricity prices:
    • General tariffs dropped from Rs 48.70 to Rs 44.4 per unit.
    • Industrial tariffs reduced from Rs 58.17 to Rs 47 per unit.
  • Tariffs for charging stations for motorcycles and rickshaws will also be reduced, aiming to promote affordable electric mobility.

Sectoral Overhaul

  • Transmission System Improvements: Faults in the power transmission system have been addressed, contributing to fewer outages and improved efficiency.
  • Independent Procurement: An independent electricity procurement system has been introduced, reducing government involvement and encouraging privatization.
  • Cross-Subsidy Elimination: The removal of Rs 150 billion in cross-subsidies has streamlined tariff structures.

Negotiations with IPPs

  • The government has saved Rs 638 billion through negotiations with Independent Power Producers (IPPs), with total savings projected to reach Rs 1,000 billion.
  • Talks are ongoing with 16 additional IPPs, including Chinese firms, to ensure further savings for consumers.

Future Privatization Plans

  • By the end of next year, three electricity distribution companies will be privatized, paving the way for a more competitive and efficient sector.

Solar Energy Developments

  • The government is preparing to announce reduced tariffs for solar energy, allowing investment recovery in just four years.
  • This initiative is expected to make solar energy more accessible and affordable for households and businesses.

Relief for Karachi Consumers

  • A review of the seven-year tariff demanded by K-Electric has been requested from the National Electric Power Regulatory Authority (NEPRA).
  • Minister Leghari emphasized that a fair tariff decision could save Karachi consumers billions of rupees.

Challenges and Commitment

Leghari criticized the previous PTI government for exempting IPPs from forensic audits and perpetuating unfair practices. He highlighted his government’s achievements in stabilizing circular debt, reducing overbilling, and improving efficiency.

“The government has achieved in nine months what was never achieved before. We aim to make Pakistan the region’s cheapest electricity provider,” he stated.

Conclusion

The federal government’s ambitious reforms in the energy sector, coupled with targeted reductions in electricity tariffs, signal a brighter and more affordable future for Pakistan’s power consumers. As summer approaches, all eyes will be on whether these promises translate into tangible relief for the public.
Tagged:

ElectricityPrices

PakistanEnergy

EnergyReforms

PowerSector
Share News: