Energy Minister Discusses Plans for Reducing Electricity Prices

Islamabad: Federal Minister for Energy, Owais Leghari, has announced that the government is considering various strategies to reduce electricity prices. He indicated that the public can expect positive developments regarding Independent Power Producers (IPPs) soon.

Key Points from the Minister’s Statement:

1. Ongoing Efforts:
   • In a recent conversation with a private TV channel, Owais Leghari highlighted that the government is carefully deliberating on measures to lower electricity costs. He emphasized that fulfilling international commitments is crucial and moving forward with IPPs through mutual agreement is seen as a viable solution.
2. Long-Term Relief:
   • The Energy Minister assured that efforts are being made to provide long-term relief to the public. He clarified that there are no formal negotiations with any province regarding new projects at the moment.
3. Previous Government’s Actions:
   • Leghari pointed out that the previous PTI government had provided relief to IPPs, an opportunity he believes was missed. He expressed hope that IPPs will consider the government’s requests to provide relief to consumers.
4. Potential Savings:
   • Discussions with IPPs could potentially save the country between 250 to 300 billion rupees annually. While the IMF is also involved in discussions regarding various options, nothing has been finalized yet.
5. Provincial Subsidies:
   • The Minister noted that Punjab has provided subsidies on electricity prices from its own budget, which does not involve federal funds.
6. Load-Shedding and Line Losses:
   • Responding to concerns raised by Asifa Bhutto Zardari about electricity outages, Leghari explained that the issue is related to line losses. He mentioned that areas experiencing up to 18 hours of load-shedding often resort to illegal connections, known as “kundi,” which exacerbates the problem. This issue is not limited to Sindh but also occurs in Khyber Pakhtunkhwa, Punjab, and Balochistan.
7. Privatization as a Solution:
   • According to Leghari, the privatization of Distribution Companies (DISCOs) is the only effective solution to address the issue of illegal electricity usage and line losses. The government is moving swiftly in this direction.

Additional Information:

• Impact on Consumers: The Minister’s remarks suggest that the government’s strategy aims to provide relief to consumers by addressing inefficiencies in the energy sector and negotiating better terms with IPPs.
• Future Plans: As discussions with IPPs and the IMF continue, further announcements regarding specific plans and their implementation are expected.

For more details, visit the Ministry of Energy’s official website.