Federal Minister for Energy, Awais Leghari, announced significant progress in reducing electricity rates, with ongoing discussions with the International Monetary Fund (IMF) potentially lowering tariffs by Rs10 to 12 per unit. Speaking at the Parliament House, he revealed that renegotiations with Independent Power Producers (IPPs) have already saved the country Rs1,100 billion, directly benefiting consumers.
Leghari emphasized that the government is working to review contracts with state-owned power plants, expecting additional savings. “We are bringing 15 more IPP contracts to the cabinet, aiming to reduce electricity costs further,” he said.
Focus on K-Electric and Theft Issues
Addressing the contentious issue of K-Electric, Leghari said the company’s demand for a high multi-year tariff is under review. “We believe the tariff is unjustified. NEPRA will make a fair decision in the public’s interest,” he stated.
Read More: LA Wildfires Cause Widespread Destruction
On electricity theft, particularly in Khyber-Pakhtunkhwa (K-P), Leghari expressed frustration over slow progress. “Our company suffered Rs6 billion in losses due to continued theft and lack of cooperation,” he said, adding that efforts to curb theft would remain a priority.
Leghari also confirmed that discussions with 16 more IPPs are underway, aiming for further contract revisions and consumer savings. Additionally, the government plans to review return-on-equity terms for state-owned power plants to influence future tariff reductions.
NEPRA Reduces Tariffs for Consumers
The National Electric Power Regulatory Authority (NEPRA) has slashed electricity tariffs by up to 75 paisa per unit for ex-WAPDA distribution companies (DISCOs) and K-Electric consumers. This reduction is based on fuel charges adjustment (FCA) for November and October 2024, respectively.
For DISCOs, the tariff cut is Rs0.7556 per unit, while K-Electric consumers will see a reduction of Rs0.4919 per kilowatt-hour (kWh). Consumers will receive the reimbursement in their January 2025 electricity bills.
NEPRA verified that transmission and transformation (T&T) losses reported by the National Transmission and Despatch Company (NTDC) remained within permissible limits during November 2024. These losses, totaling 263.686 gigawatt-hours (GWh), were included in the FCA calculation, ensuring transparency.
With ongoing reviews of IPP agreements and NEPRA’s tariff cuts, the government is optimistic about delivering further relief to electricity consumers.
Follow Day News on Google News, Instagram, YouTube, Facebook, Whats App, and TikTok for latest updates