The government has decided to terminate the power purchase agreements (PPAs) with Independent Power Producers (IPPs) made in the 1990s, aiming to provide significant relief to consumers suffering from high electricity costs. According to media reports, the federal government, under the leadership of Energy Minister Owais Leghari, has finalized a framework for this major policy shift. An official announcement is expected soon. In addition to terminating old IPP contracts, the government is reviewing agreements with other IPP companies.

A new framework is being developed for consumers using more than 201 units, with changes to the policy that currently maintains them in the same slab for six months. Special slabs are being considered for these high-usage consumers, with a potential rate of Rs. 26 per unit for those exceeding 201 units. Minister Owais Leghari emphasized the importance of the energy sector for the economy and assured that reforms are underway, with coordination crucial for their implementation. The National Task Force is working on 20-point reforms to address the sector's issues swiftly and stabilize the economy.

Credit: Independent News Pakistan