LAHORE: Major relief is expected in electricity prices as the government has reached a breakthrough in negotiations with Independent Power Producers (IPPs) on tariff reduction, sources said.
Earlier on Sunday, Federal Minister for Power Awais Ahmad Khan Leghari told the Senate Standing Committee on Power that the Power Sector Task Force has completed its review of Independent Power Producers (IPPs) and state-run power plants.
“The committee has been provided with all necessary information regarding the IPPs […] We will soon share the good news with the public about the IPPs,” Leghari said.
Sources privy to the development said that the Power Sector Task Force led by the Power Divison Minister has completed its overall review of the tariffs of more than 100 power plants. It has been negotiated that several IPPs will be shut down in phases while relief will be provided to consumers in all tariffs.
The government will cut down unnecessary taxes, with the Federal Board of Revenue (FBR) already submitting its recommendations. A decision has been made to reduce the special tariff rate for the industrial sector, sources added.