MINISTER for Power Sardar Awais Ahmed KKhan Leghari has announced that the government is pursuing privatization and concession models for electricity distribution, starting with appointing independent directors on the boards of distribution companies. Dilating upon key achievements and ongoing initiatives in the sector, he said that the circular debt costs are being shifted from electricity bills to the national debt to reduce the consumer burden. The Minister added that through innovative policies, substantial investment and bold reforms, significant progress has been made towards ensuring energy sustainability, reducing electricity costs and driving economic growth.
The power sector is at the centre of the national debate on different aspects of the national economy, therefore, it is appreciable that the Government is maintaining focus on addressing its challenges and concerns of the consumers. The process of negotiations with the Independent Power Producers (IPPs) is leading to substantial savings but its benefits for the end consumer have yet to accrue. The Minister claimed a reduction of Rs. 4.66 in the price of electricity during 2024, which might be the difference in fuel adjustment whereas the base tariff has not been lowered despite strong protests by all consumers. The Government rightly slashed the rate for industrial consumers in a bid to stimulate the industry but domestic consumers are also eagerly waiting for fulfilment of the pledges in this regard. Mr Leghari emphasized that the government was diligently working on upgrading the transmission sector, including the bifurcation of the National Transmission and Despatch Company into three entities, which will, hopefully, help improve working of the sector and provision of improved services to consumers.
