ISLAMABAD, Nov 23 (APP): Minister for Planning, Development and Special Initiatives Asad Umar Monday said that review in agreements with Independent Power Producers (IPPs) would help reducing the per unit price of electricity by over Rs 1.4.
In 2022, the price would go down by Rs 0.74 while in 2023, it would be cut by Rs 0.66 per unit, the Minister said while talking to media here.
With the agreements with IPPs, the consumers would get a huge relief of over Rs300 billion in three years, Said Asad.
He said the government decided to shut down all the low performing power plants and operationalize only efficient power plants.
“We will have to reduce the cost of power production and create competitive market.”
He said the tariff of renewable energy had also been reduced by one third hoping the review in agreements with IPPs would be finalized soon.
The previous government, he said did not take the electricity transmission and distribution system as serious as the prevailing transmission system was suitable to corrupt politicians, bureaucrats, and big capitalists.
The Minister maintained that in the past a number of imported coal based power plants were installed which were too expensive.
He said the previous government had installed power plants more than what was needed.
He informed that in two and half years, as many as 31 projects of power distribution were completed.
To a question, the Minister said it was correct that the transmissions system of K-Electric was not good.
He said in order to meet the power shortage; the federal government would give 1400 MW additional electricity to the K-Electric in two and half years.
Asad Umar said Adviser to Prime Minister on Finance, Dr Abdul Hafeez Shaikh was looking into the matter of negotiations with the IPPs.
He said an increase of Rs 1000 billion had been witnessed in the payment capacity of the country.
To a question, the Minister said that there was a dearth of technical experts in the power sector of the country.
To another question,, he said due to COVID-19, the line losses of power sector were increased.