TRADE & ECONOMY

Federal Cabinet Approves Agreements with 8 IPPs to Reduce Electricity Costs

PM Shehbaz Sharif chairs federal cabinet meeting, approves settlement agreements with 8 IPPs to save Rs 238 billion and reduce electricity tariffs for consumers.
2024-12-10
Federal Cabinet Approves Agreements with 8 IPPs to Reduce Electricity Costs

The federal cabinet, under the leadership of Prime Minister Shehbaz Sharif, approved settlement agreements with eight independent power producers (IPPs). This decision is expected to benefit the national exchequer and bring relief to consumers.

The meeting highlighted that these agreements with the IPPs would enable the Central Power Purchasing Agency to approach the National Electric Power Regulatory Authority (NEPRA) for a tariff reduction. The government assured the public that this measure would lead to a tangible decrease in electricity prices for general consumers.

The cabinet revealed that the agreements are projected to save the national exchequer Rs 238 billion. The eight IPPs involved in the settlement include:

  • JDW Unit One
  • JDW Unit Two
  • RYK Mills
  • Chiniot Power
  • Hamza Sugar
  • Al-Muaiz Industries
  • Thal Industries
  • Chinar Industry

Prime Minister Shehbaz Sharif emphasized the government’s commitment to alleviating the financial burden on the public. “We are taking all possible steps to reduce electricity prices for the common man. National interest should guide every decision and action we take,” he stated.

He further reiterated the government’s dedication to fostering the private sector and boosting industrial growth, viewing it as a cornerstone of economic stability.

This development marks a proactive step in addressing energy sector inefficiencies, aiming to create economic benefits and provide much-needed relief to households and businesses.

The coming weeks are expected to see NEPRA’s response to these agreements, setting the stage for potential reductions in electricity tariffs and furthering the government's efforts to stabilize the power sector.