ISLAMABAD: The federal cabinet, led by Prime Minister Shehbaz Sharif, has approved revised settlement agreements with eight independent power producers (IPPs) operating on bagasse. This move is projected to save approximately Rs240 billion for the national exchequer and reduce electricity tariffs.
The decision, based on recommendations from the Ministry of Energy’s power division, involves tariff adjustments for power plants, including DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries, and Chinar Industries. The Central Power Purchasing Agency will now seek approval from the National Electric Power Regulatory Authority (NEPRA) to finalize these adjustments.
The agreements are expected to provide relief of Rs238 billion and lower electricity prices for consumers. This follows the government’s earlier termination of power purchase agreements with five aging IPPs in October, aiming to save Rs411 billion and further reduce tariffs.
Prime Minister Shehbaz Sharif reiterated the government’s commitment to minimizing electricity costs and prioritizing national interests in policymaking.
Story by Syed Irfan Raza
