Federal Energy Minister Awais Leghari announced that ongoing talks with the International Monetary Fund (IMF) could result in a reduction in electricity prices by as much as Rs 10 to Rs 12 per kWh. unit.
Addressing the media at Parliament House, Leghari revealed that renegotiations with Independent Power Producers (IPPs) have already saved the country Rs.1,100 billion, with these savings benefiting the public through lower electricity prices.
The minister added that the government is now focusing on revising agreements with state-owned power plants, a move expected to lead to further savings for consumers. “We are bringing another 15 IPP contracts to Cabinet for review and we expect even more savings for the public,” he said.
Leghari also commented on the ongoing issue with K-Electric, which is demanding a large amount under its multi-year tariff.
“We believe that this tariff is unjustified and should be reduced. NEPRA will take a decision that serves the interest of the people,” he said.
On efforts to curb electricity theft, especially in Khyber-Pakhtunkhwa (KP), Leghari explained that despite several meetings with the provincial government, progress had been slow. “Our company faced additional losses of Rs6 billion due to continued theft and non-cooperation,” he said.
Looking ahead, the minister confirmed that discussions with 16 other IPPs are underway with the aim of revising contracts to further reduce electricity costs. He also mentioned that public utilities will soon undergo a review of their return on equity, which could further affect future tariffs.
Power tariff cut by 75 paisa
The National Electric Power Regulatory Authority (Nepra) recently reduced the electricity tariff by up to 75 paisa per unit for consumers of erstwhile Wapda Electricity Distribution Companies (DISCOs) and K-Electric due to Fuel Charges Adjustment (FCA).
The power sector regulator lowered the tariff up to Rs0.7556 per unit for DISCOs due to variations in fuel charges in November 2024.
For K-Electric consumers, it reduced the electricity price by Rs.0.4919. per kilowatt-hour (kWh) for October 2024. The repayment due to the tariff reduction will be made on the electricity bill for January 2025.
Discussing a tariff application by DISCOs, the regulator said the National Transmission and Despatch Company (NTDC) reported preliminary transmission and transformation losses of 244,158 gigawatt hours (GWh), equivalent to 2,946%, based on energy supplied to the NTDC system during November 2024.
In addition, NTDC reported T&T losses of 19,528 GWh, or 3,391%, for Pak Matiari-Lahore Transmission Company’s (PMLTC) high-voltage, direct current line.
NTDC is allowed T&T loss of 2.639% at 500-kilovolt and 220kV levels. For PMLTC, the permissible T&T losses are up to 4.3%.
For November 2024, the T&T losses of 263,686 GWh were therefore verified for the NTDC system at 500kV and 220kV networks and for PMLTC, keeping them within the permissible limits. These losses were included in the monthly FCA calculation.
