Secretary Power Division Fakhar Alam Irfan told the National Assembly Standing Committee on Power that negotiations with Independent Power Producers (IPPs) were conducted without external pressure, while also disclosing major violations by IPPs. He assured lawmakers that revised agreements with IPPs would soon bring relief to consumers.
According to media reports, committee Chair Muhammad Idrees raised concerns over the Lahore Electric Supply Company’s (Lesco) poor performance and called for stricter accountability to curb electricity theft.Â
The committee also questioned the imposition of 7.8 million extra units on consumers in District Kasur, assumed to be theft-related. A four-member sub-committee, led by Rana Muhammad Hayat Khan, has been formed to investigate the matter and will submit its report within 30 days.
The power secretary revealed that Lesco suffered Rs83 billion in losses last year, while Peshawar Electric Supply Company (Pesco) reported losses of Rs130 billion, largely due to bill non-recovery and theft. He also confirmed that one or two IPPs had suggested resolving disputes through the London Court of International Arbitration, but the government refused arbitration.
Discussing energy reforms, he announced a plan to install a 1,000-megawatt battery storage project in the southern region to stabiliSe the grid by storing wind energy. Talks are underway with the World Bank, Asian Development Bank, and Islamic Development Bank to finance the $500 million project.
The committee was also briefed on the Jamshoro coal power plant, which requires Rs12.93 billion to complete its final stages. The test run is yet to be conducted as it operates on imported coal.Â
In response to questions about using local coal, the secretary stated that the Thar coal mine is being expanded, and a railway line from Thar to Port Qasim is under construction.
Providing a cost breakdown, he explained that electricity from oil costs Rs35 per unit, imported coal Rs16, and local coal only Rs4 per unit. The government aims to phase out oil-based power plants within the next three to four years.
Committee member Syed Mustafa Kamal argued that lasting reform would require breaking the monopoly of power distribution companies (Discos) and introducing multiple market players. The power secretary responded that the government is moving toward a competitive system, with the Independent System and Market Operator (ISMO) already registered. A wheeling policy, expected by the end of March, will allow electricity to be purchased from any plant in the country, regardless of location.
