Power minister hints at revised IPP deals, promises relief in tariffs soon

Minister for Power Sardar Awais Leghari announced that revised deals with Independent Power Producers (IPPs) are expected to be shared with the public in the coming weeks. 

Speaking before the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Leghari emphasized that negotiations with IPPs have progressed and will not be revised unilaterally.

He explained that a task force, comprising the government, SECP, and other relevant bodies, has conducted a comprehensive review of power generation units, including government-owned plants. The review covered various aspects such as Return on Equity (RoE), Operation and Maintenance (O&M) costs, and technology investments to address the rising costs of electricity tariffs.

He said the government was scrutinizing costs of plants operating under upfront tariffs compared to those established through competitive bidding. 

Leghari assured that the government is not violating contracts but is seeking mutual agreements with IPPs, recognizing that the current tariff structure burdens consumers. The review of RoE and O&M costs is now complete, with an announcement expected soon.

The power minister highlighted that the current level of electricity tariffs is unsustainable. The task force is examining which power plants are necessary and exploring possibilities to reduce tariffs by up to Rs1 per unit. 

Addressing customer service issues, Leghari said that new customer care centers, modeled after the 1122 emergency service, are being set up in Discos. Starting next week, consumers will be able to register complaints via a universal 118 helpline, with all complaints and response times tracked.