Federal Minister for Power, Awais Leghari, has announced that ongoing negotiations with the International Monetary Fund (IMF) could result in a reduction in electricity tariffs of up to Rs 10-12 per unit.
Addressing the media in Parliament, Leghari revealed that renegotiations with Independent Power Producers (IPPs) have already saved the country Rs1.1 trillion, with these savings benefiting the general public through lower prices electricity.
The minister added that the government was now focusing on reviewing agreements with state-owned power plants, a move that is expected to lead to additional savings for consumers. “We are submitting an additional 15 IPP contracts to cabinet for review, and we hope for even more savings for the public,” he said.
Leghari also commented on the ongoing problem with K-Electric, which demands a large sum as part of its multi-year tariff.
“We believe this tariff is unjustified and should be reduced. NEPRA will take a decision that serves the interests of the people,” he said.
On efforts to combat electricity theft, particularly in Khyber-Pakhtunkhwa (KP), Leghari explained that despite numerous meetings with the provincial government, progress has been slow. “Our company suffered additional losses of Rs 6 billion due to persistent thefts and lack of cooperation,” he said.
Looking ahead, the minister confirmed that discussions with 16 other IPPs were underway, with the aim of revising contracts to further reduce electricity costs. He also mentioned that government power plants would soon undergo a review of their return on equity, which could further influence future tariffs.
Electricity tariff reduced by 75 paisa
The National Electric Power Regulatory Authority (Nepra) recently reduced electricity tariff by up to 75 paisa per unit for consumers of erstwhile Wapda Electricity Distribution Companies (DISCO) and K- Electric due to Fuel Charge Adjustment (FCA).
The power sector regulator has reduced tariffs by up to Rs0.7556 per unit for DISCOs due to changes in fuel tariffs in November 2024.
For K-Electric consumers, the price of electricity has been reduced by Rs 0.4919 per kilowatt hour (kWh) for October 2024. Reimbursement under the tariff reduction will be made on electricity bills for January 2025 .
Discussing a tariff application of DISCOs, the regulator said the National Transmission and Despatch Company (NTDC) reported interim transmission and transformation (T&T) losses of 244.158 gigawatt hours (GWh), equivalent to 2.946%, on the basis of energy supplied to the NTDC system during November 2024.
Additionally, NTDC reported T&T losses of 19.528 GWh, or 3.391%, for the Pak Matiari-Lahore Transmission Company (PMLTC) high-voltage direct current line.
NTDC is permitted T&T losses of 2.639% at 500 kilovolt and 220 kV levels. For PMLTC, allowable T&T losses can be as high as 4.3%.
Thus, for November 2024, the T&T losses of 263.686 GWh were verified for the NTDC system on the 500kV and 220kV networks and for the PMLTC, keeping them within the admissible limits. These losses were included in the FCA’s monthly calculation.
