Winter relief package to slash electricity prices by Rs 20-30 per unit

ISLAMABAD: As part of a special winter package, electricity prices will be slashed by Rs 20 to Rs 30 per unit, said Federal Energy Minister Sardar Awais Ahmed Khan Laghari.

He was announcing a new initiative aimed at reducing electricity prices and encouraging higher usage in the winter months. The minister revealed that the government is actively working to reduce electricity prices by Rs 8 to Rs 10 per unit. However, in the winter package they may be reduced by Rs 20-30 per unit.

Electricity price to be reduced to Rs10 per unit: minister

He highlighted ongoing reforms in the power sector, including efforts to reduce the cost of electricity production, which are seen as crucial for long-term sustainability.

The minister also confirmed that the government has been renegotiating contracts with Independent Power Producers (IPPs) to bring down costs. Discussions have already been finalised with five IPPs, resulting in savings of Rs 411 billion, he said. These revised contracts will be implemented in the coming days, and further agreements are expected to generate even more savings.

“The cooperation of the IPPs and public support will help save billions more in the future,” Laghari said, noting that the IPPs had earned significant profits during the recent heatwave. He praised the collaboration of various agencies and credited the Chief of Army Staff Syed Asim Munir with playing a key role in finalising the revised agreements.

In addition to addressing price concerns, the Energy Minister discussed plans to improve the transmission system and develop infrastructure for electric vehicles. Charging stations for electric vehicles will be established nationwide as part of the government’s strategy to meet growing electricity demands.

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Laghari also shared that a new institution will be established to facilitate the buying and selling of electricity units, ensuring that power companies can independently lower prices in the future. He expressed optimism about the reforms, calling the successful negotiations with IPPs “a new ray of light” for the power sector’s development.