Major cut in electricity prices unlikely soon: power minister

ISLAMABAD: Power Minister Awais Leghari said on Friday that the nation would soon hear a positive outcome of negotiations with independent power producers (IPPs), with efforts in motion for a gradual reduction in electricity prices, but he cautioned that major relief could not materialise immediately.
Testifying before the Senate Standing Committee on Power, Mr Leghari said the task force led by him, constituted by the prime minister, had completed the review of the power sector and the “people would soon get good news about the IPPs”. He said he would update the Senate panel shortly as he had been providing details earlier.
The minister said the task force had also reviewed in detail the rate of return on equity (ROE) and operation and maintenance (O&M) costs of both public and private power projects. In doing so, the panel also examined the technologies used by various IPPs in setting up plants, along with investments and all expenditures involved.

Mr Leghari, however, reiterated his earlier stance that the government would not take any unilateral action over agreements signed with the IPPs and the entire exercise was being taken forward in consultation with the power producers.
The “progress on consultations with the IPPs would be made public in a couple of weeks”, he said, adding that discussions had also taken with IPPs over their profitability.
Responding to a question, he said about Rs80bn had been retur­ned to Lahore Electric Sup­ply Com­pany (Lesco) consumers, who were overcharged a few months ago.
During the meeting chaired by Senator Mohsin Aziz, the Senate committee also addressed public complaints about overbilling and poor service from electricity distribution companies.
Senator Palwasha Muhammad Zai Khan highlighted widespread issues with incorrect meter readings, sharing her family’s experience of visiting the Lahore Electric Supply Company (Lesco) offices 28 times in three months, where they faced misconduct from staff. She called the situation part of a “mafia” and demanded that the Federal Investigation Agency (FIA) be involved to dismantle this group and set an example.
Senator Palwasha expressed that if her family faced such treatment, the plight of the general public must be far worse. Senator Aziz acknowledged the severity of the issue and agreed that it had significant public importance, noting that the scale of suffering was likely far greater for the common people.
A senior official from the power division, while concurring with the members, informed the panel that actions had already been taken. The individual responsible has been transferred and the faulty meter reading has been cancelled.
Power Minister Leghari, who is known for coming up with unusual explanations, said that what Senator Palwasha complained about fell under customer care, which was not directly part of electricity distribution. He said there was a complaint system, through a toll number 118, and all calls made to this number were forwarded to the distribution companies.
He said the government was working on implementing a computerised system at the subdivision level and revamping it to ensure complaints were resolved with equal importance. He said that simply transferring people was not the solution, as “we are striving to make real changes”.
Published in Dawn, September 21st, 2024