Power Minister Leghari Promises Electricity Tariff Reduction in Pakistan

In a significant development for electricity consumers in Pakistan, Federal Minister for Power Awais Ahmad Khan Leghari has announced that the Power Sector Task Force has completed its review of independent power producers (IPPs) and state-run power plants. This review is expected to pave the way for good news regarding a reduction in electricity tariffs, which would ultimately benefit consumers. However, the minister has cautioned that while some relief is on the horizon, it will not be substantial or immediate.

During a briefing to the Senate Standing Committee on Power, Minister Leghari emphasized that the government is committed to a gradual reduction in tariffs rather than a sudden drop. He stated, "No big relief is possible for the power consumers," indicating that the process will take time and careful consideration. The task force has meticulously assessed various factors, including the return on equity (ROE), operation and maintenance (O&M) costs, and outstanding dues of the IPPs.

Leghari assured the committee that the government is not taking unilateral actions regarding contracts with IPPs. Instead, he highlighted that all efforts are being made with the confidence and mutual consensus of the IPPs involved. He mentioned, "We will soon share good news with the public about the IPPs," which has raised hopes among consumers who have been burdened by high electricity costs.

Concerns regarding overbilling and incorrect meter readings were also raised during the committee meeting. Senator Palwasha Muhammad Zai Khan expressed her frustration over the difficulties her family faced, having to visit the electricity office 28 times in three months due to incorrect billing. She condemned the behavior of officials, labeling it as part of a mafia, and called for strict action against such practices. The committee chairman acknowledged the seriousness of these issues, agreeing that the scale of suffering among the public is likely much greater.

A senior official from the Power Division responded to these concerns, stating that actions have already been taken against those responsible for the faulty meter readings. The minister also pointed out that customer care falls outside the direct purview of electricity distribution, but assured that a complaint system is in place to address consumer grievances.

Senator Mohsin Aziz, the committee chairman, further emphasized the need for clarity in reports regarding bagasse-based IPPs and their tariff determination. He raised questions about the pricing of bagasse, suggesting that the ministry should review this pricing and provide a detailed report. This highlights the ongoing challenges in ensuring fair pricing and transparency in the energy sector.

As discussions continue, the committee is set to investigate further into the issues of electricity theft and overbilling. The need for systematic organization of data regarding electricity distribution and load shedding has also been stressed, as discrepancies in feeder rates and data have been noted. The committee aims to provide a clearer picture of the situation to ensure accountability and improve the overall experience for consumers.

While the promise of reduced electricity tariffs is a welcome development for consumers, it is essential for the government to address the underlying issues of overbilling, incorrect meter readings, and transparency in pricing. The ongoing discussions and investigations by the Senate Standing Committee on Power are crucial steps towards ensuring that the power sector operates fairly and efficiently, ultimately benefiting the citizens of Pakistan.