Energy Minister Leghari says per unit power tariff should be less than Rs10

Federal Energy Minister Awais Ahmed Khan Leghari has said that in the first phase of the initiative, the Cabinet approved the cancellation of power purchase agreements with Lalpir, HUBCO, Rousch Power Limited, Saba Power and Altas Power, reported 24NewsHD TV channel.

Addressing a press briefing in Islamabad, Energy Minister said these IPPs were initially contracted to supply electricity under various agreements, but the government is now ending the arrangements to alleviate the burden of capacity payments on consumers.

He said the government was working to create a system where power producer and power buyer will be able to sit together and settle the price. Energy Minister was of the view that power tariff should be less than Rs10 rupees.

He claimed that the government was brining working on bringing key reforms in energy sector. Energy Minister said if the power prices comes down, it will benefit the masses.

Leghari said the termination of these contracts will lead to a significant reduction in per-unit electricity tariffs. The government will not be required to make any interest payments on outstanding dues to these IPPs.

The government has also decided to take over Rousch Power, which was established under a build-own-operate-and-transfer agreement. After the ownership is transferred to the government, the plant will be privatized. However, ownership of the remaining four IPPs will remain with their current owners.