The National Assembly’s Standing Committee on Power was informed that the government has halted capacity payments to 22 Independent Power Producers (IPPs), resulting in savings of Rs1.5 trillion and expected to reduce electricity costs by Rs4 to Rs5 per unit.
During the meeting, Power Secretary Dr. Muhammad Fakhre Alam Irfan briefed the committee, stating that payments had been stopped for 14 oil-based and 8 bagasse-based IPPs. He added that the government is working to discontinue payments to more IPPs, which could lead to further savings and lower electricity tariffs for consumers.
Committee member Mustafa Kamal raised concerns about some IPPs claiming their contracts were terminated under pressure. The power secretary clarified that several IPPs had violated contract terms, and the government had offered them the choice to either comply or undergo financial audits by the National Electric Power Regulatory Authority (NEPRA).
Two IPPs refused to cooperate, prompting NEPRA to initiate audits, with public advertisements for the audits already published, the secretary added.
The committee also discussed complaints of an additional 7.8 million units being charged to LESCO (Lahore Electric Supply Company) consumers. A sub-committee was formed to investigate the matter further.
Committee member Rana Mohammad Hayat voiced concerns over rising electricity bills and WAPDA’s growing expenditures in recent years. He urged the government to clarify when consumers would receive relief and called for transparency on the potential savings from using local coal in power generation.
In response, power division officials stated that electricity generated from local coal costs Rs4 per unit, significantly lower than the Rs16 per unit cost of imported coal. They added that furnace oil-based electricity remains the most expensive, costing between Rs30 and Rs32 per unit.
