Govt working to cut power tariff: Awais Leghari

Federal Power Minister Awais Leghari has said the government is working seriously on the issue of IPPs.

“The government is determined to reduce electricity prices,” he said while addressing a press conference in the federal capital.

“We are working on reforms in the power sector.  IPPs or no IPPs … serious work should be done instead of staging sit-ins and press conferences” he said

The Jamaat-e-Islami has been staging a sit-in for days against the coalition government for its failure to cut power tariffs.

JI Ameer Hafiz Naeem hints at starting ‘civil disobedience movement’ if demands not met

Flanked by Mutahidda Qaumi Movement leaders, the minister said the MQM has reservations regarding which its leaders have been briefed.

“I don't want to go into details due to legal complications. All issues are being reviewed in detail.”

The power minister said: “Even if Gohar Ejaz makes his own Supreme Court, no one will understand him.

He added “Yesterday the former prime minister said on ARY that Gohar Ejaz cannot explain the issue of capacity rate. Depreciation of rupee after 2018 is due to increase in interest rate and capacity payments.”

Former commerce minister Gohar Ejaz has raised reservations about IPPs and urged the power minister to make the payment process public.

Sharing data on capacity payments, Gohar Ejaz pointed out the IPPs were paid Rs150 billion in the first three months of this year.

IPPs getting billions of rupees without generating electricity, discloses Gohar Ejaz

He shared that these monthly payments, amounting to Rs 150 billion, were made from January to March 2024.

Ejaz highlighted a concerning issue where many IPPs operated at less than 10% capacity. Despite this, four power plants received Rs 10 billion each month without generating any electricity.

He criticized this practice, stating, "Our hard-earned money is being paid to forty families under the guise of capacity payments." Ejaz argued that power plants should only receive payments when they produce electricity.

He emphasized the need for fair representation of all stakeholders in the National Electric Power Regulatory Authority (NEPRA) and urged the government to refrain from conducting business at the expense of public funds.  "Consumers should not be mistreated," Ejaz stated.