ISLAMABAD: Pakistan Energy Minister Owais Leghari on Thursday said that electricity prices can be reduced by Rs 10 to 12 per unit.
Speaking during the meeting of the National Assembly Standing Committee on Energy, the federal minister that they are discussing with the International Monetary Fund (IMF) on captive power plants.
Owais Leghari said that the government will soon resolve the issue of captive power plants. He hoped the government would reduce the electricity rate by Rs 50.
The Federal Minister said that they are going to review 8 bagasse power plants, they are going to review 16 more plants, after which the return on equity of government plants will come into play.
He said that a tariff revision for eight bagasse-based power plants would save billions annually. After reviewing agreements with bagasse power plants, the government will reduce electricity prices.
He further said that the authorities will resolve the issue of captive plants by the end of this month.
The energy minister also said that electricity has become cheaper by Rs 4 for domestic consumers.
Under the $7bn Extended Fund Facility (EFF), Pakistan had agreed to impose a levy on captive power plants.
Pakistan has to meet the condition that required gas disconnections to CPPs by the end of January 2025 to qualify for disbursement of the next tranche of funding. Pakistan is now seeking flexibility on the issue of gas cuts to captive power plants.
Extenstion in winter electricity relief package
The global lender has demanded that authorities ‘disincentivize’ the gas supply to CPPs and shift it to the electricity grid or charge the equivalent price.
Pakistan’s Finance Ministry has written to the global lender, committing to continue increasing prices for captive power users where network distribution and reliability exist. Other captive power users should make the transition to the electricity grid by the end of this year.
The federal government is also considering an extension of the Winter Electricity Relief Package.
“Under the package, the domestic consumers will get a relief of up to Rs 26.7 per unit for their power consumption surpassing 200 units of the protected category. It will help them save Rs11.42 to Rs26 per unit in the three months of winter,” Prime Minister Shehbaz Sharif had said while announcing the relief package.
