Govt. Announces Relief of Rs. 231 Billion For Power Consumers

Power consumers are set to receive relief of Rs. 231 billion over the next three years as a result of a decrease in the rate of return for state-owned power plants and a change in the structure of LNG-based power plants.

According to the details, consumers will get a relief worth Rs. 100 billion due to a cut in the return rate of state-owned power plants, WAPDA projects, and GENCOS.


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Whereas, consumers will receive a relief worth Rs. 131 billion on account of reduction in fuel cost after a change in the structure of LNG-based power plants.

It was revealed by Minister for Planning, Development and Special Initiatives, Asad Umar, during a recent cabinet meeting presided over by Prime Minister Imran Khan.

Asad Umar apprised the meeting that 3 LNG power plants had agreed a minimum 66% fuel offtake with LNG suppliers under the gas sale-purchase agreement.

Last month, during a meeting of the Cabinet Committee on Energy, the Power Division sought to repeal the minimum 66% fuel offtake clause from the sale-purchase agreement.


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However, a 10% fuel offtake was agreed against the 17% proposed by NEPRA during negotiations with concerned stakeholders.

WAPDA, on the other hand, has argued that it would lose Rs. 16 billion in FY 2020-21 while timely completion of Diamer-Bhasha, Mohmand, and Dasu dams would be adversely impacted.

  • as generalized statement as it gets. no specific as to how much per unit cost a consumer will be given relief of….. PEA-TEA-Aye haye

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