Minister for Power Division Sardar Awais Ahmad Khan Leghari on Thursday claimed that “successful negotiations” with independent power producers (IPPs) had resulted in saving Rs1.1 trillion for the national treasury.

Speaking at the 4th International Hydropower Conference in Islamabad, Leghari shed light on the reforms implemented in the energy sector and future policies, a statement from the Ministry of Energy said.

The minister said the government had saved Rs1.1 trillion through what he called successful talks with the IPPs.

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A competitive electricity market would be launched in March 2025, where electricity prices would be determined by market dynamics, with the government acting only as a facilitator, Leghari announced.

He mentioned that the losses of distribution companies had significantly decreased.

“From July to November 2023, these losses stood at Rs223 billion, which reduced to Rs170 billion during the same period in 2024,” he said.

Discussing measures taken to reduce electricity prices, the minister emphasised that various taxes included in bills were being reviewed to provide relief to the public.

He identified the uniform tariff system as a major challenge, stating that under the system, the burden of one company was unfairly shifted to another.

On solar energy, he noted a growing demand for solar solutions due to expensive electricity. Under net metering, an additional 10,000 to 12,000 megawatts of electricity is expected to be added to the system, according to Leghari.

“Further, work is underway to promote off-grid solar solutions to enhance power generation further,” he was quoted as saying in the statement.

He elaborated on steps taken for the restructuring of the National Transmission and Despatch Company (NTDC) and improving the transmission system, making it more efficient.