Senate Energy Committee Calls for Review of Bagasse Electricity Pricing Mechanism

Power Tariff Reduction

ISLAMABAD: The Senate Energy Committee, chaired by Senator Mohsin Aziz, has highlighted significant discrepancies in the pricing of electricity generated from bagasse, citing the absence of a formal pricing mechanism. During the meeting, Senator Aziz questioned the wide range in bagasse valuations, with some plants pricing it at $356 per tonne and others as low as $75.

The Chairman of the National Electric Power Regulatory Authority (NEPRA) acknowledged that despite the government introducing a framework for bagasse and biomass in 2013, a clear system for pricing bagasse is still lacking. The committee has called for a review to address these discrepancies and establish a regulated pricing model for the sector.

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