**Government Engages with IMF to Cut Power Tariffs by Rs 12: Energy Minister**
Federal Minister for Energy, Awais Leghari, revealed groundbreaking negotiations with the International Monetary Fund (IMF) that could potentially slash electricity rates by a substantial Rs 10 to 12 per unit. This move aims to alleviate the burden on consumers grappling with high utility bills.
Renegotiations with IPPs Yield Massive Savings
Leghari highlighted that recent renegotiations with Independent Power Producers (IPPs) have already resulted in savings of a staggering Rs 1,100 billion. These savings have directly translated into lower electricity prices for the public, providing much-needed relief to households across the country.
Focus on State-Owned Power Plants for Further Savings
The government is now shifting its focus towards revisiting agreements with state-owned power plants to unlock additional savings for consumers. By bringing 15 additional IPP contracts to the cabinet for review, the government anticipates even more significant reductions in electricity costs for the general populace.
Challenges with K-Electric and Electricity Theft
Addressing the contentious issue of K-Electric’s demand for exorbitant multi-year tariffs, Leghari emphasized the need for a fair and consumer-friendly decision by NEPRA. The government stands firm in its belief that these tariffs are unjustified and must be lowered to benefit the public.
Furthermore, efforts to combat electricity theft, particularly in Khyber-Pakhtunkhwa (K-P), have faced challenges due to slow progress and lack of cooperation from the provincial government. Leghari expressed concern over the additional losses incurred by the company due to continued theft practices.
Future Prospects: More IPP Contract Revisions and Tariff Reviews
Looking ahead, the minister confirmed ongoing discussions with 16 other IPPs to reassess contracts and drive further reductions in electricity costs. Moreover, government-owned power plants are set to undergo a comprehensive review of their return on equity, a move that could shape future tariff adjustments.
In a bid to provide immediate relief, the National Electric Power Regulatory Authority (Nepra) recently slashed electricity tariffs by up to 75 paisa per unit for consumers of DISCOs and K-Electric. This adjustment, attributed to variations in fuel charges, is a step towards easing the financial burden on consumers struggling with high electricity bills.
Leghari’s efforts to engage with international bodies like the IMF and implement strategic negotiations with key stakeholders underscore a commitment to address the pressing issue of high power tariffs in the country, ultimately aiming to deliver tangible benefits to the public.
