The Pakistani government has decided to evaluate and terminate agreements with 15 Independent Power Producers (IPPs) in order to provide relief to the public overwhelmed by high electricity rates, according to sources on Thursday.
A working committee, chaired by Energy Minister Awais Leghari, has completed the framework for addressing the issue. Contracts with six IPPs created in the 1990s will be terminated immediately, and agreements with nine others will be phased out over time.
According to sources, contracts with Gul Ahmed Energy Limited, Kohinoor Energy, Liberty Power Project, Tapal Energy Limited, Attock Generation, and KAPCO will be terminated without extension. In addition, agreements with Lal Pir, Pakgen, Fauji Kabirwala Power, Habibullah Coastal, Japan Power Generation, Saba Power, Hubco, Southern Electric Power, and Rousch Power would be phased out over the next three to five years.
The government is also developing a framework for people who consume more than 201 units of power. The policy governing the same slab for consumers who surpass 201 units in six months will be amended. Special slabs will be implemented for these clients, with a suggested tariff of Rs26 per unit for those with more than 201 units.
Federal Minister Awais Leghari emphasized the importance of the energy sector to the economy, saying, “We are implementing reforms in the energy sector and will ensure their execution.”
He emphasized the importance of collaboration in implementing these reforms, citing the role of the national task group in overseeing the 20-point reform plan. “The sooner we address these issues, the quicker the economy will stabilise,” he said.
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