Power prices to drop by January

Author: inp

Federal Energy Minister Owais Leghari announced that the government has begun revising agreements with five Independent Power Producers (IPPs), signaling a potential reduction in electricity prices by January 2024.

Speaking in news programme in a private TV channel, Leghari said that inflation, falling interest rates, and the strengthening of the Pakistani rupee would contribute to lowering power tariffs in the coming months.

Leghari explained, “We’ve informed the owners of these IPPs that the current prices are unsustainable, and we can’t continue payments at the current rates. A review process of agreements with five power plants has already started, and we’re also considering conducting forensic audits if necessary.”

He also shared that productive discussions are underway with IPP owners, who acknowledged the instability in the system. “We have engaged in some tough negotiations, but there is progress. Our talks are expected to save billions, and if we cut payments to IPPs by Rs 100 billion, it could result in a Rs 1 per unit reduction in power costs.”

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