During the public hearing, Power Division officials were told that consumers will save up to Rs1.5 trillion after the tariff revision with state-owned electricity distribution companies, which means that the federal government will face a similar shortfall in revenue and the government has no intention of imposing any new taxes to make up for this shortfall. However, officials indicated that government subsidies on electricity bills to consumers could be reduced to make up for this shortfall.
During the hearing, the audience appreciated the government’s efforts under which capacity payments were renegotiated with power plants to reduce them. It should be noted that the federal government has recently renegotiated contracts with power plants under which the federal government will now pay these plants the same amount of electricity based on their requirements. In addition, a specific amount will be paid for generation capacity.
The hearing participants said that the government has cut off 220 mmcfd of gas from Sui Southern Gas and 150 mmcfd from Sui Northern, while the government should provide liquefied natural gas to these power plants to further reduce electricity prices. During the hearing, the audience was told that the government power plants with which the Central Power Purchasing Agency has re-signed agreements to reduce the burden of electricity bills on consumers include National Power Parks Management Company Balloki, National Power Parks Management Company Haveli Bahadur.
