'Renewal of subsidy Punjab's prerogative'

Power Minister Sardar Awais Ahmed Khan Leghari on Wednesday said that Rs170 billion subsidy is being paid by the government to enable the electricity consumers in Karachi get electricity on a par with the prices in other parts of the country.

He expressed the views while talking to newsmen after attending the "Power Reforms Roundtable" organized at the Institute of Business Administration (IBA) main campus.

In his media talk, Leghari said that forensic audit of the Independent Power Producers (IPPs) would be carried out if it is required and expressed the hope that it would not be needed.

He said that we will make all-out efforts to achieve the target of Rs 10 to 12 per unit reduction in the electricity cost in the next one-and-a-half year, in case all reforms are implemented including re-profiling of CPEC loans, review of IPPs contracts, settlement of transmission constraints, improving efficiency of distribution companies and broadening the tax net.

To a question, he said that we appreciate the Government of Punjab for providing subsidy in the electricity bills for the months of August and September and its renewal or review would be the decision of the Punjab government.

The minister told another questioner that K-Electric is being regulated under its Regulator. Leghari said that there is a need of further improvement in the efficiency of the power regulatory bodies, because the regulator has to watch the interests of the consumers and we as a government also need to further strengthen our regulatory bodies.

Earlier, in his keynote address to the participants of "Power Reforms Roundtable", the Federal Minister for Power said seven out of ten power distribution bodies would be privatized very soon.

He said that we need to review the IPPs Contracts and it would be done with mutual consent. He said that we are also going to announce the Electric Vehicle Regulations in next few days.

He told another questioner that the higher income group of the society is the beneficiary of the solar net metering. The minister said that we are the cleanest energy producers in the region and all Pakistani should be proud of it.

Later, the Federal Minister for Power Sardar Awais Ahmed Khan Leghari was presented shield by the Executive Director IBA Karachi Dr S Akbar Zaidi.