Leghari says govt making efforts to protect the poor in power bills. PM to give ‘good news’ on IPPs within a month or two. Govt planning to set up new power plants to address loadshedding.
ISLAMABAD - Federal Minister for Energy Awais Leghari has admitted that the electricity tariffs in Pakistan are the highest in the region, however, the poor are being provided subsidy in power bills.
“No doubt, we’re providing the most expensive electricity our consumers in the region, but poor consumers are getting at subsidised rates with others bearing the burden,” the minister said this while addressing the National Youth Convention here yesterday. Awais Leghari said that due to the high cost of electricity, industries were shutting down but the government is now providing electricity to the industries at lower rates, bearing the additional costs. He suggested that two hours of load shedding could result in significant savings upto Rs 50 billion.
The ministers said that earlier, the cost of electricity for the consumers was Rs 10 per unit, but it has increased due to the rise in the dollar’s value. The current average electricity cost stood at Rs 44 per unit, he added.
“Within a month or two Prime Minister Shehbaz Sharif will give a good news to the public and industries,” he said. “Everyone will be benefited from it”.
Awais highlighted that Pakistan’s actual power generation capacity is 29,000 MW, not the often-cited figure of 45,000 MW.
He noted that the year-round demand is just 7,000 MW, with peak demand reaching 24,000 MW. The minister explained that maintaining an additional 1,845 MW in the system, which is only required for 85 hours annually, incurs an annual cost of Rs 50 billion.
Awais added that enduring 874 hours of load shedding annually, or about 10% of the year, could save up to PKR 100 billion in capacity payments.
“Capacity payments are the price we pay to avoid load shedding,” Awais Leghari remarked.
The minister said the task force has been constituted, in which the agencies’ people have also been included.
He also said that the government is planning to establish new power plants to address the issue of power load-shedding in the country.
The minister said that the steps being taken to address energy crisis in the country. “Reforms are inevitable in energy sector,” he said.
He said the energy billing has been 1100 billion with 400 billion losses in it.
“We silently worked over the issue of the IPPs but all and sundry joined the bandwagon,” energy minister said. “It became good for us as it brings pressure over the IPPs,” he said.
“We convinced the IPPs within the limits of international contracts,” minister said. “We did the work in three-and-half months, which didn’t happen in Pakistan’s history,” Leghari said.
Leghari also underlined inefficient gas usage and hinted at the possibility of an upcoming package to address these concerns.