Pakistan’s Electricity Prices to Drop Soon: Details Inside

As part of his efforts to significantly reduce electricity prices in Pakistan, the Federal Minister for Energy, Owais Khan Leghari, announced recently. The idea is to bring down rates by Rs50 per unit, a huge relief for millions of consumers who are struggling to pay for their power.

Pakistan’s Electricity Prices to Drop Soon Details Inside - The FESCO Bill

Captive Power Plant and IMF Discussions

The issue of captive power plants is being negotiated with the International Monetary Fund (IMF). This could bring down the electricity prices by Rs10 to Rs12 per unit if successful. The discussions are likely to wrap up soon, and, as a result, there should be hope of more affordable energy for households as well as industries.

Power Plants Under Review

Eight bagasse based power plants are being reviewed by the government, with another 16 to be reviewed. The goal of these efforts is to minimize energy costs. Further, changes to the return on equity of government plants are being contemplated. Therefore, domestic consumers have already been paying Rs4 less per unit for electricity.

Concerns Sparked by Projected Profit

K-Electric projected profit of Rs500 billion in next five to seven years was a cause of concern for Leghari. He said this profit level was unreasonable and can have negative effects on consumers, especially in Khyber Pakhtunkhwa. The government is doing its best to ensure fairness to all stakeholders.

Outlook for Energy Prices

By the end of the month, the federal government will be making real strides in resolving key energy issues, such as captive power plant matters. These efforts are expected to serve the public with much needed relief and signal a brighter energy affordability future for Pakistan.

FAQs

A: The government hopes to cut electricity prices by up to Rs50 per unit.

A: The IMF discussions on captive power plants that could bring down electricity prices by Rs 10 to Rs 12 per unit are ongoing.

A: Rs4 per unit has already been cut in domestic electricity prices.

A: But K-Electric’s projected profit of Rs500 billion could be harmful for consumers in Khyber Pakhtunkhwa in particular.

A: The end of this month is expected to see key matters, such as captive power plants, resolved.

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