
An undated image. — Unsplash
In a groundbreaking move, Federal Minister for Power Awais Ahmad Khan Leghari on Thursday announced that the government was working to slash power tariff by Rs12 per unit.
The significant, impending drop was reflected during a parliamentary session, during which the power minister informed the National Assembly’s Standing Committee on Power that eight to nine factors were under consideration before implementing electricity tax cuts.
For the cause in question, the government was also revising contracts with independent power producers (IPPs) and government-owned generators.
Confident about a potential deal closure by the of the month, Leghari also noted that talks with the International Monetary Fund (IMF) regarding captive power plants were approaching finalisation.
Ahead of the upcoming drop, it's worth mentioning that the government had already dipped electricity tariffs by Rs4 per unit for domestic consumers.
By adjusting the Power Purchase Agreements (PPAs) with the IPPs, the government saved Rs1.1 trillion.
Aiming to evaluate the PPAs of 16 more IPPS, the government is currently reworking the operations of eight bagasse-based power plants, with the revision aiming to examine the return on equity of state-owned power plants.