Islamabad, August 1, 2024 – Federal Minister for Power Awais Ahmad Khan Laghari has assured that the ongoing capacity payment issues affecting electricity tariffs will be resolved soon.
This assurance brings hope to citizens who have been burdened with inflated electricity bills due to capacity payments to Independent Power Producers (IPPs).
“The incumbent government is working on multiple strategies to expedite the privatization process and enhance the use of Thar coal,” Minister Laghari stated. “Our goal is to provide maximum relief to both domestic and industrial sectors.”
Laghari explained that the government is conducting a thorough analysis of power plants’ actual generation and energy consumption patterns during both summer and winter seasons. These steps are aimed at identifying and rectifying flaws within the power sector to ensure a more efficient and reliable supply of electricity.
“In reply to a question, the minister emphasized that the issues concerning IPPs and capacity payments will be addressed soon,” Laghari added. “These matters are of critical importance and are being prioritized to ensure stability in the power sector.”
The assurance by the minister will give hope to citizens who are receiving inflated electricity bills due to capacity payments to IPPs.
Regarding the privatization of Distribution Companies (DISCOs), Laghari revealed that some companies are set to be privatized in the first phase, with additional steps planned for the second and third phases. This phased approach is designed to gradually improve the efficiency and performance of these companies, ultimately benefiting consumers.
“The government is determined to bring improvements to the power sector so that maximum relief can be extended to residential and industrial consumers,” stated Laghari. “We are committed to making the necessary changes to ensure a stable and reliable power supply for all.”
The minister’s assurances come at a time when the power sector faces significant challenges, including capacity payments to IPPs and inefficiencies within DISCOs. By addressing these issues head-on, the government aims to create a more sustainable and resilient power sector that can meet the demands of a growing population and economy.
The proposed strategies, including the increased use of Thar coal and the privatization of DISCOs, are expected to play a crucial role in achieving these goals. Thar coal, in particular, holds significant potential for reducing reliance on expensive imported fuels, thereby lowering production costs and ultimately benefiting consumers.
As the government continues to implement these measures, stakeholders in the power sector remain hopeful that the promised reforms will lead to tangible improvements in service delivery and cost efficiency. The resolution of capacity payment issues and the successful privatization of DISCOs are seen as key steps toward achieving a more robust and reliable power sector in Pakistan.