ISLAMABAD: The federal authorities has began engaged on varied choices, together with tariff revision for eight energy vegetation, to cut back energy charges by as much as Rs10 per unit, Geo News reported citing sources on Tuesday.
According to the sources, the federal government’s first choice entails negotiating with Independent Power Producers (IPPs) to go on the advantages to the general public.
By terminating agreements with 5 IPPs, the federal government is projected to save lots of a complete of Rs411 billion, with an annual saving of Rs70 billion.
Sources throughout the Ministry of Energy have disclosed that revising the tariff for eight bagasse-based energy vegetation may lead to whole financial savings of Rs238 billion, translating to an annual discount of Rs8.83 billion.
Additionally, the termination or modification of contracts with 16 extra IPPs would lead to an additional advantage of Rs481 billion.
These financial savings can be handed on to customers within the type of lowered electrical energy prices.
The sources additional mentioned that the federal authorities can be contemplating an extension of the Winter Electricity Relief Package, in addition to proposals to cut back taxes on electrical energy payments.
The authorities at the moment generates over Rs800 billion yearly from taxes levied on electrical energy payments.
The growth comes because the Prime Minister Shehbaz Sharif-led authorities has repeatedly harassed on decreasing the exuberant electrical energy costs.
Apart from finalising the terminating of contracts with 5 IPPs final yr, the federal government, final month, additionally accomplished the negotiations with RFO-based vegetation beneath “take and pay” phrases.
Islamabad, as reported, goals to slash electrical energy tariffs by Rs12 per unit by March 2025 by means of agreements with the IPPs and renewable vitality sources like wind and solar energy vegetation.
“We will be capable of scale back the facility tariff by Rs3 per unit by means of talks with IPPs, GPPs, wind and solar energy vegetation. And the debt re-profiling will additional assist scale back the tariff by Rs4 per unit,” a senior authorities official instructed the publication in December 2024.
“The authorities’s functionaries wish to scale back the taxes on electrical energy payments with an impression of Rs5 per unit. This is how the off-peak tariff of Rs41.68 per unit would drop to Rs29.68 per unit and the peak-hour tariff of Rs48 would scale back to Rs36 per unit,” he added.
