Power Sector Overhaul To Slash Electricity Prices Soon: Energy Minister

Power sector overhaul to slash electricity prices soon: Energy Minister

ISLAMABAD, (UrduPoint / Pakistan Point News - 12th Oct, 2024) Energy Minister Awais Leghari on Friday said that the government is working to reduce electricity prices by 8 to 10 rupees per unit in the short term.

Talking to a private news channel, he said that this price reduction is part of broader reforms, which include improving the power transmission system and streamlining energy markets.

"We are fully committed to making the necessary changes to ensure a more efficient and cost-effective power sector," he added.

He also revealed that successful negotiations with five independent power producers (IPPs) have been concluded, with revised agreements set to be implemented soon, adding that these moves are part of the government's broader reforms agenda for the power sector.

Minister further said that a new body, the Independent Market Operator, would start operating from January next year.

This body will oversee the sale and purchase of electricity units, streamlining the energy market.

He said that the government is also exploring other options to reduce prices, including working with the IMF and international partners.

The privatization of six distribution companies (DISCOs) was also in progress and expected to be completed by the end of next year, he added.

He said that addressing the issue of capacity payments is a key focus, with demand creation forming an integral part of the government's reform package.