ISLAMABAD — Federal Energy Minister Owais Leghari has renewed efforts to convince the federal cabinet to end provincial taxes on electricity bills and limit profits from solar net metering, despite opposition from provincial governments. He plans to present a revised plan within one to two weeks that would extend the current one to one-and-a-half-year return on investment period to two to three years.
Leghari also shared that the cabinet has received new rules related to wheeling charges, marking a key step toward implementing a competitive electricity trading system. Meanwhile, the government is considering supplying 5,000 to 6,000 megawatts of additional cheap electricity to industries such as data centers and crypto mining, and talks are ongoing with the IMF on this matter.
He clarified that changes in net metering procedures will not reduce the price per unit of electricity but will prevent further price hikes. Without limiting net metering, consumers connected to this system might face billions in future electricity bills.
The minister highlighted significant cost savings through negotiations with independent power producers. These talks helped save over 300 billion rupees by canceling projects worth 10,000 megawatts out of the proposed 17,000 megawatts and reducing future payments by 400 billion rupees.
Leghari revealed that he has written to all four chief ministers asking them to stop electricity distribution companies from collecting provincial taxes. So far, only one chief minister has responded, and the issue will be taken to the cabinet once all replies are received.
Additionally, the Energy Division’s administrative reforms have improved electricity bill recovery and reduced transmission losses. Collection rates rose from 92.4% in 2024 to 96.6% in 2025, while transmission and distribution losses dropped from 18.3% to 17.6%, saving billions in revenue.
He also exposed large-scale electricity theft by factories in Lahore, where meters were tampered with. Despite attempts by factory owners to pressure officials, Prime Minister Shehbaz Sharif and authorities have supported the crackdown on theft. The Energy Minister emphasized that distribution companies will focus on improving bill recovery, breaking theft networks, and better overall management.
Regarding K-Electric, Leghari suggested that since most of its electricity now comes from the national grid, uniform rates for fuel costs and quarterly adjustments should be applied. K-Electric’s imported electricity has increased from 1,000 to 1,600 megawatts, with plans to add 400 more megawatts next month. This issue will soon be discussed with the power regulator, and a unified solution will be presented to the federal cabinet.
Finally, the minister acknowledged that LNG import contracts, made about ten years ago assuming 100% fuel use by LNG-based plants, need urgent review. He said the contracts should follow economic merit order principles, similar to previous revisions made for independent power producers’ agreements.