Govt targets Rs8-10 per unit cut in power tariff: Awais Laghari

Islamabad: Minister for Energy (Power Division) Awais Leghari has said that the government was aiming for an Rs8-10 per unit tariff reduction as five independent power producers (IPPs) cancelled their contracts, a move expected to save the national exchequer Rs411 billion.

“We will reduce the power tariff in mutual consultation with generation companies,” Leghari said while addressing a press conference after the federal cabinet’s meeting in Islamabad.

Prime Minister Shehbaz Sharif, earlier in the day, announced that five IPPs have "voluntarily" agreed to cancel their power purchase agreements with the federal government, providing Rs60 billion in annual relief to inflation-hit consumers.

The high cost of electricity has become a contentious political issue, with opposition parties leveraging public dissatisfaction to criticise the incumbent government’s handling of the energy sector and agreements with independent power producers (IPPs).

Furthermore, he said the government was considering introducing a programme, which he said would increase the usage of electricity in winter. “In this regard, a decision will be made after taking all stakeholders into confidence,” he added.