Power companies agree to cut tariffs at PM's request
A major problem, which is not specific to the IPPs, is the amount of taxes and surcharges that consumers pay on electricity bills, which now constitute up to 33% of the bills. photo: file
In response to a request from Pakistan’s Prime Minister Shehbaz Sharif, local energy companies have agreed to lower electricity production tariffs, providing much-needed relief to the public amid an ongoing energy crisis.
Liberty Power Producers and other major power companies, including Gul Ahmed Energy Power Plant, have expressed their commitment to reducing tariffs.
The Chairman of Gul Ahmed Energy Power Plant, Danish Iqbal, highlighted the collective responsibility of all stakeholders in tackling the country's energy issues.
"Our primary goal is to lower electricity tariffs for the people of Pakistan," said Iqbal, adding that the energy sector must work together to address the crisis.
Gul Ahmed Wind Power Ltd also reiterated its commitment to ensuring affordable energy for consumers while contributing to Pakistan's economic well-being.
Danish Iqbal emphasised that the country needs a long-term strategy for harnessing renewable sources like wind and solar power, which would bring down production costs significantly.
He also pointed out that lowering interest rates could have a positive impact on electricity tariffs.
"We need to engage with foreign investors and lenders to create solutions for producing cheaper electricity," Iqbal added.
As the demand for electricity in Pakistan continues to exceed production, energy producers are looking at innovative ways to increase output while reducing costs.
Iqbal noted that engaging foreign shareholders and switching to renewable energy sources will be key in achieving this goal.
The companies' efforts to reduce tariffs are seen as a step forward in easing the financial burden on consumers and stabilising the power sector.