ISLAMABAD, April 5: Power Minister Awais Ahmad Khan Leghari on Friday confirmed that there has been no reduction in the national base electricity tariff so far, even as the government prepares to offer temporary relief of up to Rs7.41 per unit through quarterly and monthly adjustments.
At a press conference, the minister explained that the Rs1.90 per unit negative quarterly tariff adjustment (QTA) will *fluctuate with exchange and interest rates, while a separate Rs1.71 per unit relief due to a reduced petroleum levy would remain in place through *June 2025.
Leghari assured that ongoing talks with CPEC power producers on debt reprofiling and coal conversion were progressing, with consumer benefits expected in the future. He emphasized that the IMF and other lenders were convinced to support sector reforms based on long-term sustainability.
The Power Division clarified that multiple relief components — including Rs4.97 from fuel cost and levy diversion, and Rs1.42 from lower sales tax — will collectively reduce electricity costs by Rs7.41 per unit for consumers this quarter.
Despite these savings, the base tariff, which was hiked by *Rs7.91 per unit in July 2024, remains unchanged. Leghari noted that base tariff adjustments rest with *NEPRA and are due for revision in the next fiscal year.
The minister revealed that Rs3.696 trillion in savings had been secured through revised deals with 30 IPPs and six GPPs, with Rs2.661tr alone from government-owned plants.
He also unveiled plans for structural reforms, including the *Indicative Generation Capacity Expansion Plan (IGCEP), aimed at least-cost power procurement and a shift away from the *single-buyer model to a competitive market.
Addressing circular debt, Leghari said it had improved by *Rs339bn, countering an earlier projection of a Rs300bn increase. However, Discos in *Hyderabad and Sukkur underperformed due to poor governance, lacking independent boards.
The government will extend the Rs3.23/unit debt servicing surcharge to support circular debt restructuring and aims to eliminate Rs2.4tr of debt in six years.
Privatization of power distribution companies will begin with *Islamabad, Faisalabad, and Gujranwala, followed by Lahore, Multan, and Hazara, with long-term concessions planned for Discos in *Hyderabad, Sukkur, and Peshawar.
Story by Khaleeq Kiani
