Federal Minister for Energy Awais Leghari disclosed an increase in the unit cost of electricity produced by Independent Power Producers (IPPs) from three rupees in 2016 to 285 rupees during a Senate Standing Committee on Energy meeting.
Minister Leghari outlined a future shift in electricity procurement policies, stating that consumers would directly purchase electricity from power plants, moving away from the government’s role in buying and selling electricity.
The discussion also touched on widespread protests concerning the IPPs, with the Chairman of the Private Power and Infrastructure Board (PPIB) suggesting postponing these issues. The committee has since requested detailed contracts related to the IPPs, underlining their commitment to public relief amidst these energy challenges.
In response to the committee’s concerns, Minister Leghari promised to provide all pertinent information in the next meeting, asserting transparency in government dealings. He also requested a private session at the end of the meeting to discuss sensitive matters further.
Additionally, Leghari mentioned government plans to sell the Nandipur and Guddu power plants as part of broader reforms. He highlighted the drastic rise in production costs at the Sahiwal Coal Power Plant, attributing it to capacity charges incurred by maintaining plant operations around the clock.
The Secretary of the Power Division provided further insights, noting a decline in industrial electricity demand to 25% and detailing the financial burden of subsidies.
In the previous year, a subsidy of 244 billion rupees was extended to domestic consumers, which has escalated to 692 billion rupees for 25 million consumers utilizing up to 400 units. He also highlighted that electricity companies’ 190,000 employees receive 15 billion rupees worth of free electricity annually, underscoring the extensive resources involved in the nation’s energy sector.
