ISLAMABAD: The Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, said on Sunday that the government is taking all possible steps to lower power tariffs and safeguard consumer rights.

Talking to a private news channel, he highlighted efforts to reduce the cost of electricity production, adding that the government is currently reviewing agreements with power plants and independent power producers (IPPs) through mutual understanding.

He noted that the power sector is struggling with several issues and urgently needs reforms, particularly regarding IPP contracts.

Rebasing of electricity tariffs likely from Jan 1

The burden of circular debt and high interest rates is significantly affecting consumers, he added.

In response to a question about profit from power plants, he stated that all power plants would have to revise their profit plans to benefit consumers.

Providing affordable electricity to the industrial sector is also a key focus of the government, he added.

He reiterated that the main reasons behind increasing electricity prices are the lack of strategic planning, the burden of circular debt, and high interest rates on consumers.

He said that the government was embarking on a major renegotiation of its energy sector deals with China, aiming to achieve more sustainable and cost-effective energy for the country.

“The focus of this review is on two key areas, debt reporting and coal sourcing,” he added.