ISLAMABAD: The federal government has decided to retire expensive power plants to reduce electricity prices in the country.

This information was shared by the top bosses at the Power Division with a delegation of Muttahida Qaumi Movement (Pakistan) on Monday in which electricity issues in Karachi, Hyderabad and capacity payment issues of Independent Power Producers (IPPs) were discussed.

The leadership of MQM (Pakistan) had been criticising K-Electric and Hyderabad Electric Supply Company for poor service delivery, inflated billing whereas MQM’s Member National Assembly, Mustafa Kamal was complaining of high profits of Independent Power Producers and capacity payments.

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According to an official statement, MQM delegation discussed electricity issue in Karachi. Power Division, in its statement also claimed that the delegation was briefed about ongoing reforms in the power sector.

The delegation was apprised that the federal government is working on war footing to resolve electricity issues across the country. The Power Division also briefed the delegation that imported coal-fired power plants will be converted to local coal.

The government has estimated saving of $ 1 billion per annum with conversion of imported coal power plant on local coal which will be translated into Rs 3.50 per unit.

Copyright Business Recorder, 2024