Energy Minister Reveals Drastic Increase in Power Costs, Moving to Direct Consumer Purchases

Islamabad: Energy Minister Oweis Leghari disclosed at a Senate committee meeting that the cost of electricity from Independent Power Producers (IPPs) has surged dramatically from 3 rupees per unit in 2016 to 285 rupees per unit today. The meeting, chaired by Senator Mohsin Aziz, discussed ongoing issues with IPPs, including public protests and requests for detailed information on IPP agreements.
Leghari stated that the government plans to shift from buying electricity itself to allowing consumers to purchase it directly. He emphasized that detailed information about IPP contracts, capacity charges, and the efficiency of plants will be provided in the next committee session.
Senator Shibli Faraz criticized the IPPs for alleged fraud and highlighted that Pakistan produces the most expensive electricity in the region. Secretary of Energy reported that the country’s installed capacity is currently 39,600 megawatts, down from 42,000 megawatts due to plant retirements. He also noted that payments to IPPs are based on plant conditions, not installed capacity.
The minister added that K-Electric’s electricity is costly, with the government providing a 170 billion rupee subsidy to maintain uniform tariffs. He warned of potential price increases between 2025 and 2027 and mentioned a comprehensive review of new power projects over the next decade. Additionally, the government is planning to sell the Nandipur and Guddu power plants and will enable direct consumer purchases of electricity in the future.