The Pakistani government plans to review and cancel agreements with 15 Independent Power Producers (IPPs) to help lower electricity prices for the public, sources said on Thursday.
Energy Minister Awais Leghari has led a task force that has finalized a plan to tackle high electricity costs. The government aims to immediately terminate contracts with six Independent Power Producers (IPPs) from the 1990s and gradually phase out agreements with nine more.
Sources have disclosed that contracts with Gul Ahmed Energy Limited, Kohinoor Energy, Liberty Power Project, Tapal Energy Limited, Attock Generation, and KAPCO will be ended immediately.
Meanwhile, agreements with Lal Pir, Pakgen, Fauji Kabirwala Power, Habibullah Coastal, Japan Power Generation, Saba Power, Hubco, Southern Electric Power, and Rousch Power will be phased out gradually over the next three to five years.
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The government is working on a new plan for consumers using more than 201 units of electricity. The policy for these high-usage consumers will be updated, introducing special rates. A new rate of Rs26 per unit is proposed for those exceeding 201 units over a six-month period.
Federal Minister Awais Leghari stressed the need for energy sector reforms, saying they are crucial for the economy. He highlighted the role of the national task force in managing these changes and stated that quick action on these reforms will help stabilize the economy.
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