In the first phase, govt terminates agreements with five IPPs—Hubco Power, Rousch Power, AES Lalpir Power, Saba Power Plant, and Atlas Power
ISLAMABAD: (UrduPoint/Pakistan Point News-Dec 18th, 2024) The Federal government is preparing to finalize negotiations with private IPPs, state-owned power plants, and solar and hydropower projects by March 2025 to reduce electricity tariffs to Rs12 per unit, the latest media reports said.
Additionally, the re-profiling of loans related to CPEC and state power plants, as well as reducing taxes on electricity bills, would be completed by February 2025.
The revenue shortfall would be compensated through other sectors of the economy.
The reports said that in the first phase, the government terminated agreements with five IPPs—Hubco Power, Rousch Power, AES Lalpir Power, Saba Power Plant, and Atlas Power. Currently, it is working on ending the contract with the 365 MW Pakgen Power Limited IPP, bringing the total number of terminated contracts to six.
The official stated, “We have managed to reduce the power tariff by Rs3 per unit, and loan re-profiling will help further lower it by Rs4 per unit. By reducing taxes on electricity bills, the government aims to achieve an additional reduction of Rs5 per unit.”
As a result, the off-peak tariff is expected to decrease from Rs 41.68 per unit to Rs. 29.68 per unit, while the peak-hour tariff will be reduced to Rs. 36 per unit.
The task force on electricity will finalize its discussions with 18 IPPs, converting these contracts to a “Take-or-Pay” mode within days. Of these, 15 IPPs have already signed revised contracts. The government will now engage in talks with nuclear power plants, hydropower projects, coal-based plants, RLNG-based power plants, provincial power plants, and GENCOs.
