Contracts with eight more IPPs under review

In a move to reduce electricity tariffs, the government has terminated agreements with five IPPs, and the nation can expect good news regarding eight more IPPs, the National Assembly was informed on Friday.

Responding to a calling attention notice during the Question Hour, Information Minister Ataullah Tarar said that the government is focused on lowering power tariffs and providing relief to the underprivileged through subsidies.

"Contracts with five IPPs have been terminated, and negotiations are underway with eight other IPPs," the minister told the house. "This will help reduce electricity prices and positively impact the economy as well. An additional subsidy was also provided to consumers during this summer."

The minister cited several other measures to lessen the electricity bill burden on the people. On account of fuel cost adjustment (FCA), he said, the National Electric Power Regulatory Authority (Nepra) reduced the tariff by Rs0.86 per unit across the country on Thursday, he said.

"The federal government has provided a subsidy of Rs50 billion to consumers using up to 200 units of electricity and Rs276 billion for those consuming up to 300 units. Additionally, the Punjab government has granted an extra subsidy of Rs45 billion to consumers using electricity between 201 and 500 units," Tarar said.

"The K-Electric is also being given a subsidy of Rs174 billion. Subsidy is provided to lifeline and non-lifeline consumers on an annual basis and this year more subsidy was given to the consumers," the minister added.

Similarly, he said, the closure of five IPPs would benefit the economy to the tune of billions of rupees.