Energy minister Owais Leghari has said saving of Rs 3696 billion has been made due to talks with 36 IPPs which will be instrumental in affording further relief to consumers in coming years.
Circular debt will be reduced to zero in 6 years. These will be reduced to zero level in coming years. Electricity will be purchased on competitive basis, he said this while addressing a press conference here Friday.
The electricity tariff will further come down due to reforms.
He held the major problem of power sector is non productive expenses. Enhancement in tariff and 2400 circular debt have aggravated the difficulties.
Non competitive addition has been made in power sector. Power theft is too a problem. Problems are compounded due to fragile coordination and regulatory gap. Additional burden is shifted to consumers due to exchange rate. Poor performance and lack of coordination too is a major problem.
He pointed out that privatization process in respect of IESCO, FESCO and GEPCO is underway. In the second phase LESCO, MEPCO will be privatized.
He said 27000 tubewells will be shifted on solar energy in 7 months.
The relief given of Rs 7.41 per unit includes in basic tariff. I can make no prediction about basic tariff at present.
Agreements were renewed with 36 IPPs which accrued saving of Rs 3696 billion.
