Govt to auction surplus electricity to industries

Minister says govt will end oversight of electricity trade by 2025; US invites Pakistan to energy dialogue

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ISLAMABAD:

Minister for Power Sardar Awais Leghari, addressing an event in Islamabad, announced the government's plan to auction surplus electricity to industries. This initiative, aimed at stimulating industrial growth and creating employment opportunities, was detailed in a press statement by the Ministry of Energy on Tuesday.

According to the statement, Leghari emphasised that surplus electricity would be made available competitively to maximise benefits for the economy and industrial sector. The minister also highlighted the National Electric Vehicle (EV) Policy, which seeks to promote the adoption of electric vehicles across Pakistan. He stated that electricity tariffs for EV charging stations had been significantly reduced to make EVs more affordable and accessible. This step, he said, aligns with the government's vision of promoting sustainable energy solutions and reducing environmental impact.

Leghari pointed to several other reforms in the energy sector, including efforts to reduce electricity tariffs, eliminate circular debt, and address inefficiencies in the pricing system. He described the current pricing mechanism as unsustainable. Agreements with Independent Power Producers (IPPs), he said, are being revised to ensure transparency and sustainability. Similar revisions will follow for government-owned IPPs in the next phase. The minister announced that by 2025, the government would no longer oversee electricity trade. Instead, consumers and power companies will directly negotiate electricity purchases, fostering competition and benefiting stakeholders. Industrial estates and economic zones, he added, will soon manage their own power distribution systems, reducing inefficiencies and encouraging industrial activity.

He also mentioned the ongoing privatisation of electricity distribution companies, noting that efforts are being made to reduce the tax burden on consumers.

Discussing coal-based power plants operated by Chinese companies, Leghari stated that these plants would transition from imported coal to locally mined coal from the Thar region. This shift aims to reduce import costs and promote the use of domestic resources, bolstering the local economy.

In a separate statement, the Ministry of Energy shared details of Leghari's meeting with US Ambassador Natalie A Baker. Leghari apprised Baker of recent reforms that have improved the power sector. He emphasised the government's policy of appointing independent boards of directors for state-owned enterprises to ensure merit-based decisions. Baker invited Leghari to the Energy Security Dialogue in Washington, emphasising the value of his participation.