Business Desk 
Dec 18, 2024
In a bid to serve tax-ridden consumers facing rising costs of regularly consumed commodities, the government is reportedly considering cutting electricity tariffs by Rs12 per unit by March 2025.
The government will achieve a significant reduction through agreements with private Independent Power Producers (IPPs), government power plants (GPPs), and renewable energy sources like wind and solar power plants.
The huge drop is said to be a part of negotiations and proposals to adjust existing contracts, leading to annual savings of up to Rs300 billion.
Citing sources familiar with the matter, The News reported that the revenue shortfall would be recompensed from other key sectors of the economy.
Agreements with five IPPs were ceased in the first phase. With the said five IPPs including M/s Hubco Power, M/s Rousch Power, AES Lalpir Power, Saba Power Plant and Atlas Power, the government also cancelled the contract with an IPP named Pakgen Power Limited of 365 MW.
By indulging in talks with IPPs, GPPs, and wind and solar power plants, the government will be able to slash power tariffs by Rs3 per unit.
Similarly, out of the whole Rs13 reduction on the cards, Rs4 per unit would be further saved by executing debt re-profiling. At last, the remaining Rs5 cut will be attained by shedding the taxes on electricity bills.
