Ipps To Save Rs 3,696 Billion, Relief For The People, Says Energy Minister
Federal Energy Minister Owais Leghari has said that “major reforms have been made in the power sector, announcing savings of Rs 3,696 billion and saying that the people will get relief from it.
Brieflying media representatives in the federal capital, Federal Minister for Power Division Owais Leghari highlighted several important steps and challenges related to the power sector. He said that negotiations with 36 IPPs have resulted in savings of Rs 3,696 billion, which will lead to relief for consumers in the coming years.
He said that the biggest challenge of the power sector is the cost of production, in which the increase in tariffs and the circular debt of Rs 2,400 billion have increased the difficulties. Similarly, poor performance of DISCOs and lack of coordination are also a major problem, while the continuous decline in electricity demand is also a major problem for the sector. It is a big challenge for the government.
The Energy Minister said that due to losses in transmission lines, the price of electricity increases by Rs 1 to 2. A plan has been made to reduce these losses.
He said that the price of electricity has been reduced by Rs 6.14 for 1.89 crore consumers (who use up to 100 units), while their overall rates have been reduced by Rs 56.
Owais Leghari said that circular debt will be eliminated within 6 years and it will be brought to zero in the coming years. All electricity meters are being replaced with automated systems. Similarly, the process of privatization of IESCO, FESCO and GEPCO is underway, while in the second phase, privatization of LESCO, MAPCO and HAZICO will be done. He said that 27,000 tube wells will be converted to solar energy in 7 months.
The Federal Minister said that under CPEC, attention will be paid to coal-fired power generation in Chinese plants.
He further said that the target of losses of DISCOs from July to December was Rs 303 billion, but the losses were limited to Rs 158 billion while saving Rs 145 billion. Rs 9 billion has been saved in the revolving credit sector.
In the briefing, he said that instead of buying expensive electricity, we are looking for sustainable solutions for the future. Comprehensive planning is being done to stabilize the electricity sector under the 10-year electric policy.
Owais Leghari said that we cannot say anything about the reduction or increase in the basic electricity tariff right now. It remains to be seen what will happen in the basic electricity tariff by June. All matters are carried out through the regulator, the government does the work. The relief of Rs 7.41 has been given is also included in the basic tariff. No one can predict the basic tariff at the moment.
