Major Cut in Electricity Prices Unlikely Anytime Soon: Leghari

power sector

ISLAMABAD: Power Minister Awais Leghari on Friday signaled ongoing negotiations with independent power producers (IPPs), stating that the nation would soon hear positive developments regarding efforts to gradually reduce electricity prices. However, he cautioned that significant relief should not be expected immediately.

Testifying before the Senate Standing Committee on Power, Leghari explained that the task force he leads, established by the prime minister, had completed a review of the power sector. “People will soon receive good news about the IPPs,” he said, promising to update the panel on further details shortly.

The minister clarified that the review covered the rate of return on equity (ROE) and operation and maintenance (O&M) costs for both public and private power projects. Additionally, the task force examined the technologies employed by IPPs in plant setups, alongside investments and expenses.

Leghari reiterated that the government would not take unilateral action regarding IPP agreements and emphasized that all steps were being taken in consultation with power producers. “The progress of consultations with the IPPs will be shared publicly in a couple of weeks,” he added, mentioning that discussions also included IPP profitability.

During the meeting chaired by Senator Mohsin Aziz, the committee also addressed public complaints regarding overbilling and poor service from distribution companies. Senator Palwasha Muhammad Zai Khan criticized widespread meter reading errors and shared her own family’s frustrating experience with Lahore Electric Supply Company (Lesco), calling for the Federal Investigation Agency (FIA) to dismantle what she called a “mafia” within the system.

A senior power division official confirmed that actions had been taken, including the transfer of those responsible, and the cancellation of erroneous readings.

Leghari, however, noted that customer care falls outside the scope of distribution operations but promised improvements to the complaint system with efforts to computerize services and ensure fair resolutions.

Story by Khaleeq Kiani

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