ISLAMABAD – The federal government is planning to provide a reduce electricity price by Rs12 per unit by March 25 as it is holding negotiations with private Independent Power Producers (IPPs), state-run power plants, and solar and hydropower projects.
Reports said the plan to provide relief to masses will be completed by Feb 2025 after re-profiling of loans related to CPEC and government power plant loans, and reduction of taxes on electricity bills. The loss of revenue will be managed through other sectors of the economy.
A government official told media that in the first phase, the government has terminated agreements with five IPPs: Hubco Power, Roash Power, AES Lal Pir Power, Saba Power Plant, and Atlas Power, and now it is in the process of terminating the contract with the 365-megawatt Pak Gen Power Limited IPP. In this way, the government will have terminated six contracts so far.
The official stated the government’s efforts will help bring down the off-peak tariffs to Rs29.68 per unit from Rs41.68 and peak hours tariff to Rs36 per unit.
The electricity task force will complete its discussions with 18 IPPs and will soon transition these contracts to a “take or pay” mode.
Of these 18 IPPs, 15 have already signed revised contracts, and now the government will begin negotiations with nuclear power plants, hydropower plants, coal-based and RLNG-based power plants, as well as provincial government power plants and GENCOs.
