ISLAMABAD: Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, informed the National Assembly on Wednesday about significant progress in the power sector. He highlighted that the government had reviewed contracts with 28 Independent Power Producers (IPPs), leading to savings of Rs1,457 billion for the national exchequer.
In response to questions during the Question-Hour session, Leghari denied reports that any power distribution company (DISCO) had been handed over to the Inter-Services Intelligence (ISI). He clarified that specialized intelligence units, consisting of provincial officials, the Federal Investigation Agency (FIA), and intelligence networks, were actively helping reduce electricity theft, improve recoveries, and minimize losses, particularly in regions like Multan.
The Minister also announced that after March, the government would stop purchasing electricity, following the establishment of an Independent Electricity Market (IEM). This new market will allow consumers to purchase electricity from multiple suppliers.
Leghari shared that since June last year, electricity tariffs for industries had been reduced by Rs11 per unit, and by Rs4 for the rest of the country. He also mentioned that the electricity tariff for electric vehicle (EV) charging stations had been slashed from Rs71 to Rs39 per unit.
To address power pilferage and improve recoveries, special units had been set up, and advanced metering infrastructure was being introduced across all DISCOs to ensure accurate billing and improve customer satisfaction. Furthermore, negotiations were ongoing with IPPs and government power plants to renegotiate power purchase agreements and revise tariff terms for bagasse power projects, aiming to reduce the financial burden on electricity consumers.
On the topic of taxes, the Power Division revealed that K-Electric had been authorized to collect eight different taxes from its consumers, totaling Rs102.43 billion in the past year. These taxes include various forms of GST, income tax, and other charges like withholding net metering and TV license fees, as per the Sindh Local Government Act.
In another update, the Petroleum Division clarified that the current government was not borrowing any oil from other countries.
Leghari concluded that conditions for the privatization of power distribution companies would be met by the end of this month, marking a significant milestone in the ongoing energy reforms.
Story by Asim Yasin