The federal government will introduce new power incentive packages over the next two months, according to Federal Minister for Power Awais Leghari.
The schemes include a “Winter Months Package” and an “All Year Incentivized Package” which will help boost industrial energy consumption and address current power constraints.
The government is also examining nighttime electricity consumption to offer reduced rates during off-peak hours, enhancing industrial efficiency. Notably, a budget of Rs. 60 billion has been allocated for automated transformers to allow selective shutdowns instead of complete feeder outages, ensuring continuous power supply to compliant users.
Leghari criticized the previous government’s handling of Independent Power Producers (IPPs). He revealed that a preliminary review of IPP issues, led by Muhammad Ali, now Special Assistant to the Prime Minister on Power, lacked depth and required further scrutiny.
Addressing high electricity tariffs, Leghari noted the import of 6,500MW of solar capacity last year for off-grid use. He warned that new hydropower projects would be costly, with projected per-unit expenses of Rs. 20-25 due to high fixed costs and interest payments.
Chairman Senate Standing Committee on Power Senator Mohsin Aziz warned of a looming crisis due to IPPs. The committee called for a comparative analysis of electricity tariffs in neighboring countries and requested detailed information on IPPs’ establishment and operational issues.
Leghari committed to providing transparent data and urged the National Accountability Bureau to expedite investigations into Rs. 480 billion payments made in 2013. The committee stressed the need to address power theft in certain provinces and improve load-shedding recovery agreements with provincial authorities.
Secretary Power Division Rashid Mahmood Langrial reported a drop in installed capacity to 39,000 megawatts, with electricity generation falling to 29,000 megawatts in June due to reduced hydel output. He said the government plans to shut down five plants to reduce capacity payments and address demand.
Langrial criticized the high power generation costs by K-Electric and the government’s plan to supply electricity from the national grid to maintain uniform tariffs across the country.