Government to Make Electricity Cheaper After ‘Burying’ IPPs, Claims Energy Minister Owais Leghari

Islamabad (Kudrat Daily) — Federal Energy Minister Owais Leghari has claimed that Independent Power Producers (IPPs) have been “buried for the future” as the government moves ahead with major reforms in the energy sector aimed at significantly reducing electricity prices.
In a statement, the minister said the government plans to make electricity so affordable that consumers will be able to store power in batteries during the day and use it at night at lower costs.
Leghari said that after the implementation of energy sector reforms, electricity tariffs for industry and agriculture would be set separately. He announced that electricity rates for B3 and B4 categories during daytime hours would be reduced by Rs6 to Rs7 per unit.
The minister also stated that private companies would be encouraged to introduce smart meters, adding that efforts are underway to ensure that faulty electricity meters are not used for more than three months to avoid unfair billing burdens on consumers.
Speaking about broader reforms, Owais Leghari said work has already begun on 20 to 25 major reforms in the power sector. He noted that clean energy accounted for 55 percent of total power generation last year and expressed confidence that 96 percent of electricity generation would shift to clean energy by 2036.
He further claimed that the circular debt, which stood at Rs2,400 billion two years ago, has now been reduced to Rs1,600 billion, with plans to eliminate it completely within the next two to three years.
The minister added that five out of ten electricity distribution companies (DISCOs) are expected to be privatized by June next year. According to Privatization Commission estimates, the privatization process of three DISCOs is likely to be completed soon.
He also highlighted recent reductions in electricity tariffs, saying the government has cut power prices for industries by Rs16 per unit, while commercial and domestic consumers have received relief of Rs8 to Rs9 per unit.