ISLAMABAD: The federal government has announced plans to retire costly power plants in a bid to reduce electricity prices nationwide. This decision was conveyed by senior officials from the Power Division during a meeting with a delegation from Muttahida Qaumi Movement (Pakistan) on Monday. The discussions focused on electricity issues in Karachi and Hyderabad, and the capacity payments to Independent Power Producers (IPPs).
The MQM (Pakistan) leadership has been vocal about the poor service delivery and inflated billing by K-Electric and Hyderabad Electric Supply Company. MQM’s Member National Assembly, Mustafa Kamal, criticized the high profits and capacity payments of IPPs.
According to an official statement, the Power Division briefed the MQM delegation on ongoing power sector reforms and efforts to address electricity issues across the country. One significant reform includes converting imported coal-fired power plants to local coal, which is projected to save $1 billion annually, translating to a reduction of Rs 3.50 per unit in electricity costs.
