Govt moves to cut electricity tariffs

Govt also mulls passing benefits of revised IPP contracts

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ISLAMABAD:

The government has sprung into action to rationalize back-breaking electricity tariff through passing on benefits of termination and revision of IPPs contracts to power consumers and reducing taxes.

The Ministry for Energy said that the government had terminated agreements with five IPPs that would help the government save Rs411 billion. In addition, the government is also likely to save Rs238 billion through change in the tariff of bagasse based eight power plants. In addition, the government will also save Rs481 billion through revision of contracts with 16 IPPs.

The benefit of termination of contracts or amendment in the contract will be provided to consumers. Likewise, the government is also weighing an option of reducing taxes in a bid to bring down power tariff.

Meanwhile, the volume of net-metering applications has surpassed the overall production capacity amid high electricity tariff. The pending applications with DISCOs have reached 4,742.

According to NEPRA, the country's overall production capacity is 46,000 megawatt. The highest number (1,363) of net-metering applications are pending with ISECO while the production capacity is 12,276 megawatt. GEPCO has 117 pending net-metering application of 6,282 megawatt; LESCO - 699 pending net-metering application of 6,143 megawatt; FESCO - 871 pending net-metering application of 12,399 megawatt and K-Electric - 773 pending net-metering application of 10,164 megawatt.

The biggest reason of pending applications is high buy back rates. The power regulatory authority has called for balanced revised tariff structure for better results of net-metering. NEPRA has also recommended for encouraging solar users than installing big solar power projects.

In a landscape marked by soaring energy prices and environmental concerns, net metering has emerged as a beacon of resilience for households across Pakistan.

By enabling users to harness solar and renewable energy systems, net metering has not only provided relief from escalating utility bills but also catalysed a shift towards a more sustainable energy ecosystem.

This policy has empowered individuals to take control of their energy consumption, driving a wave of innovation and self-reliance.