The government has successfully negotiated revised agreements with 27 independent power producers (IPPs), securing future savings of Rs 1.57 trillion. The savings were achieved through measures like contract terminations and tariff adjustments for bagasse and thermal plants.
Key outcomes include:
- Rs 411 billion saved by terminating five IPP contracts.
- Rs 238 billion saved through revised tariffs for eight bagasse-based plants.
- Rs 922 billion saved from tariff adjustments for 14 thermal IPPs.
Negotiations are ongoing with 45 public-sector power plants to explore further savings. Officials highlighted that part of the savings will come from waiving late payment surcharges worth Rs300 billion, allowing direct benefits to consumers over time.
Energy Minister Awais Ahmad Khan Leghari assured the public that these reforms would stabilize electricity tariffs, which have already decreased by Rs 4.11 per unit since June 2024. Further reductions are expected as additional agreements are finalized.
While challenges remain, such as conducting forensic audits due to financial constraints and limited expertise, the government is focusing on expanding the impact of these energy reforms. By addressing inefficiencies in IPP operations, the initiative is poised to reduce costs for consumers and enhance transparency in the power sector.
