ISLAMABAD:
As the year draws to a close, Federal Minister for Power (Power Division) Sardar Awais Ahmad Khan Leghari on Saturday claimed that electricity rates had fallen to Rs 11 per unit during of the last nine months.
The minister shared the government’s key achievements, ongoing initiatives in the power sector and reforms in electricity distribution.
“The government is moving towards privatization and concession models, preceded by the recruitment of independent boards of directors for distribution companies,” he said at a press conference.
On independent power producers (IPPs), the minister revealed that agreements with five IPPs were terminated in the first phase, resulting in national savings of 411 billion rupees and annual savings of 70 billion of rupees.
“In the second phase, agreements with eight bagasse-based IPPs were concluded, resulting in annual savings of Rs8.826 billion and national savings of Rs238.22 billion. Negotiations with 16 other IPPs are underway and should save Rs481 billion. “, he added.
He said the power sector showed marked improvement in electricity prices and the average electricity price decreased to Rs 44.04 per unit from Rs 48.70 per unit in June 2024, a reduction of Rs 4.66.
He further explained the decline in industrial power prices, which fell to Rs 47.17 per unit from Rs 58.50 per unit in June 2024, reflecting a reduction of Rs 11.33 per unit.
Leghari explained that the government was shifting circular debt costs from electricity bills to the national debt to ease the burden on consumers.
Through innovative policies, substantial investments and bold reforms, he said, significant progress has been made to ensure energy sustainability, reduce electricity costs and boost economic growth.
Giving an overview of the reforms undertaken over the last nine months, the minister said, “We have eliminated Rs 150 billion of cross-subsidies from the industrial sector, a move which has boosted industrial growth and job creation in Pakistan” .
He also revealed the ongoing improvements in the transportation sector, including the division of the National Transmission and Dispatch Company (NTDC) into three entities: the National Grid Company of Pakistan for efficient and reliable transportation, the Energy Infrastructure Development and Management Company for project management and Independent System and Market Operator to establish a competitive and transparent electricity market.
He highlighted the solarization of agricultural tube wells in Balochistan. “We are solarizing 27,000 tube wells at a cost of Rs 55 billion, with 70 percent contribution from the federal government.”