Staff Report
ISLAMABAD: Federal Minister for Energy Omar Ayub Khan on Monday said the government would announce power sector reforms within three weeks which would also include details of the expected reduction in cost of power generation resulted from agreements with IPPs.
Omar Ayub said the agreements had been signed with all Independent Power Producers (IPPs) while with the government owned generation plants would be finalized in coming weeks.
Addressing a news conference along with Special Assistant to Prime Minister on Power Shahzad Qasim, he said the agreements would lead to reducing cost of power generation, circular debt and improve electricity transmission/distribution system in the country. Omer Ayub said that agreements with the IPPs established under the power policies, 1994, 2002 and 2006 had been signed.
However, the minister refrained from telling details saying that detailed computations and savings would be made available in three weeks. In three weeks power sector reforms would be unveiled, he added. He said the agreement, signed in the country’s best interest, would also promote industrial sector. He said the government was introducing power sector reforms and work was in final stage.
The government would announce in three weeks time a detailed reform plan for the power sector including the expected reduction in cost of power generation through revised agreements with power producers, improvement in transmission and distribution system.
Omar Ayub said the previous governments did not focus on addressing issues of the power sector and no serious efforts were made to resolve the issues faced by the sector.
He said a comprehensive plan in coordination with government of Balochistan and other stakeholders was also being made part of the power sector reform plan.
“Keep this in mind that power sector reforms and improvement in transmission system and distribution system will ensure competitive tariffs to the industry and agriculture to help them stand on their own feet,” the minister maintained.
