By Asim Hussain
ISLAMABAD: Minister for Power Division Sardar Awais Ahmed Khan Leghari on Thursday said that reduction in power tariff and provision of electricity to the people at affordable price were government’s top priorities.
Addressing at press conference here, the minister said that various pragmatic measures were being taken to slash electricity prices in order to provide maximum relief to the masses.
He said the electricity price should reduce Rs 10 per unit for which agreements with Independent Power Producers (IPPs) were mutually revised and reassessed.
He said the prime minister set up a National Task Force to bring reforms in the power sector. Five IPPs were identified and negotiation were started with them, he added.
He said every section of the agreements were thoroughly studied and then mutually reached at an agreement to terminate the power purchase agreements with 5 IPPs.
The Minister said that it would help save around Rs 60-70 billion annually and cumulative benefit of Rs 411 billion to the national kitty.
He appreciated the owners of five IPPs to terminate the contracts in larger national interest. The Chief of Army Staff (COAS) also supported the National Task Force, he added.
He said that the agreement would be materialized in next few days.
He paid rich tribute to entire Task Force, National Coordinator Lt Gen Zafar, Special Advisor to Prime Minister on Power (SAPM), representative of CPPA, PPIB, NEPRA for doing this job to provide relief to the masses.
Awais also announced setting up of Independent Market Operator System in the power sector. A full-fledged institution was being set up which would be fully operational in January 2025, he said.
He said it would not only promote competition but also boost the entire power sector to the new heights.
He said National Transmission and Despatched Company (NTDC) was also being fully transformed into new shape and CPPA would have also its own role in the sector.
A comprehensive programme was also being devised to enhance consumption of electricity in winter, he added.
He said reforms were also being introduced in distribution companies (DISCOs) by taking into confidence all development partners. Visible reduction was witnessed in losses of DISCOs in last three months, he added.
He expressed the hope that a target to reduce Rs 8-10 per unit in power tariff would be achieved in few months.
The minister said the consumption of electricity would increase with reduction of power tariff and it would also help grow the industry.
He said that new shops and Charing Stations would be opened for charging of electric vehicles and batteries. It would also pave way for creating more employment opportunities in the country, he added.
Replying to a question, the minister said that the new agreement would help save billions of rupees to the national exchequer. Currently capacity payment would be paid to IPPs but not in future, he added.
He said the consumers would purchase electricity from the market like shares.
