Major cuts in electricity prices unlikely in the near future, says power minister

ISLAMABAD: Power Minister Awais Leghari announced on Friday that while negotiations with independent power producers (IPPs) are underway and may eventually result in gradual declines in electricity prices, it is unlikely that major cuts will be realized in the near future.

Leghari also revealed that a task force he heads, constituted by the prime minister, has almost completed a review of the power sector. He expressed optimism that the public would soon receive positive updates regarding negotiations with IPPs when a session of the Senate Standing Committee on Power was convened recently.

The task force looked into the rate of return on equity and the operational costs of both public and private power projects and also the technology used by IPPs. However, Leghari emphasized that the government would not act unilaterally concerning agreements with the IPPs and that all actions would be taken in consultation with them.

He further added that the progress on these consultations would be presented publicly within a couple of weeks and the profitability issues of IPPs also addressed.

Leghari responded to queries that around Rs 80 billion was refunded to Lesco consumers of Lahore who were recently overcharged.

The Senate committee said public complaints about overcharging and faults/disconnection issues by the electricity distribution companies were rife. She claimed that the situation was a “mafia” that even her family had to visit the Lesco offices multiple times and face staff misconduct. She wished for FIA intervention.

Accepting the seriousness of grievances, Senator Aziz agreed that urgent steps need to be taken and said the sufferings of the common masses are probably much worse than what is now being reported.

A high official in the power division claimed corrective measures have already been initiated, including transfer of a responsible staff with faulty meter reading cancelled.

He maintained that despite customer care issues, “we are not directly connected with them” and asserted that most efforts were intended to modernize the complaint resolution system through a toll number, 118, and efforts were underway to computerize the system so that service quality can improve. He point up real changes rather than staff transfer.