Islamabad, October 25, 2024- Federal Minister for Information, Attaullah Tarar, announced in the National Assembly on Friday that termination of contracts with 8 more IPPs is on cards. Briefing the National Assembly members, Mr. Tarar said that the government’s decision to terminate contracts with would help alleviate the financial burden on electricity consumers.
Mr. Tarar emphasized that reducing electricity costs is a top priority for Prime Minister Shehbaz Sharif, adding that additional terminations with eight more IPPs are under consideration. Tarar also noted that the National Electric Power Regulatory Authority (NEPRA) has reduced the fuel price adjustment by 86 paisa per unit, which should further help decrease bills.
He highlighted other consumer-friendly initiatives, including a substantial Rs. 50 billion subsidy for consumers using up to 200 units and an annual Rs. 276 billion subsidy for those using up to 300 units. K-Electric also receives an annual subsidy of Rs. 174 billion to support affordable rates for consumers in Karachi. Tarar confirmed that additional subsidies have been extended to both lifeline and non-lifeline consumers this year to further ease costs.
The minister reiterated the government’s commitment to resolving energy sector issues, noting that both the fuel cost adjustment and the IPP contract closures are integral to reducing electricity expenses for the public.
