ISLAMABAD: Federal Minister for Power Awais Leghari informed the National Assembly on Wednesday that the government would stop purchasing electricity after March this year as creation of an independent electricity market has been approved.
The establishment of an independent electricity market is believed to be one of the significant milestones in the country’s transition towards a more competitive and efficient energy market.
It is anticipated to have long-term positive effects on consumers and the economy as a whole, given the country’s rising electricity demand and difficulties controlling costs.
During question hour session in National Assembly, Leghari said that the independent electricity market would enable the consumer to purchase electricity from multiple suppliers.
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He said that the government has reviewed contracts with more than 28 independent power producers (IPPs) which have benefited the national kitty by Rs145.7 billion.
“For this purpose, we’ve inaugurated an Independent Authority. Now the people will purchase electricity.
We’ve also reduced the electricity by Rs11 per unit for industries and Rs4 for the rest of the country since June last year,“ he added.
He said that the electricity tariff for the electric vehicle charging stations has been reduced to Rs39 from Rs71 per unit.
“We will offer extra electricity for next three years to consumers. We will provide electricity at a lower rate to consumers starting in April,” he added.
He said that advanced metering infrastructure has been introduced in all distribution companies (DISCOs) and is being implemented in phases to ensure accurate billing and increased customers’ satisfaction.
“We are going to auction the power distribution companies where there is surplus electricity. The conditions for the privatisation of power distribution companies will be met by the end of this month. We will conduct the auction in a transparent manner,” he added.
He said that special units have been established to improve recoveries and check power pilferage, adding that the result of this initiative has been positive and is being expanded.
He said that there is no proposal to revisit the slab system, but the government is working on a number of initiatives to reduce the burden on the common man.
In response to a question, he said that the circular debt had decreased to Rs12 billion, reaching Rs2,381 billion for the period from July to November 2024, compared to the debt of Rs2,393 billion on June 30, 2024.
To a question, the parliamentary secretary for foreign affairs Shezra Mansab Kharal said Pakistan and China are committed to ensuring success of China-Pakistan Economic Corridor (CPEC) for mutual benefit.
Copyright Business Recorder, 2025
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