ISLAMABAD: Pakistan’s government saved Rs1.1 trillion through negotiations with Independent Power Producers (IPPs), and has brought down losses from Rs223 billion (July-Nov 2023) to Rs170 billion (July-Nov 2024), Minister for Power Division Sardar Awais Leghari stated on Thursday.
“Comprehensive reforms in the power sector has significantly reduced losses of distribution companies to Rs170 billion (July-Nov 2024) from Rs223 billion (July-Nov 2023),” Minister for Power Division Sardar Awais Leghari revealed while addressing the concluding ceremony of 4th International Hydropower Conference.
The conference was organized by Energy Updates in collaboration with the Private Power Infrastructure Board (PPIB), WAPDA and other stakeholders.
The minister asserted that the government and IPPs mutually renewed the contracts in the interest of Pakistan and its public.
Minister Leghari was of the view the government was going to revamp the entire power sector, noting people could no longer afford to pay the electricity bills. “We are also restructuring National Transmission and Despatch Company (NTDC),” he added.
He informed that out of total 10 Board of Directors (BoDs) of Power Distribution Companies (DISCOs), eight have been completely revamped, boasting “not a single induction was made on political basis.”
He said that the government was reviewing various taxes included in electricity bills to provide maximum relief to the consumers. Terming uniform tariff for the entire country as major challenge, he said transfer the burden of one company to another is unfair, he said.
He said a competitive electricity market will be launched in March, where market forces would determine power tariff, and the government would play only a facilitating role.
Solar energy revolution
Leghari noted that demand for solar solutions was on the rise due to the high cost of electricity, forecasting an additional 10,000 to 12,000 MW likely to be added to the system under net metering in the country.
“We had introduced the net metering back in 2017, which was enjoying by elite class”, the minister claimed, asserting the high cost of electricity had brought a solar energy revolution in the country.
‘Govt committed to protecting consumers interest’
“The K-Electric has sought Rs10 per unit increase in the tariff from the power regulator but according to the government calculation, the increase should be only Rs1 per unit. The government was committed to protecting consumers interests and would not allow additional burdens on them,” he added.
He went on to say that the government has challenged the status quo in the energy sector in the last 9 months. “We are also assessing whether major projects like Basha Dam and nuclear power are feasible for us or not,” he said.
No one could deny the importance of water storage of Diamer-Basha dam as it will not only help flood mitigation but also store water for agriculture, he said. However, he said that whether we could afford $3 billion cost on power transmission from the dam.
Minster Leghari said that the people would also witness a revolution in battery storage in near future.
Stressing the need for necessary decisions for sustainable development in the energy sector, the minister said the government was taking every possible measure to facilitate the public.
