Contracts with 28 IPPs reviewed, bringing Rs1.4tr to kitty: Leghari

ISLAMABAD: Federal Minister for Energy Sardar Awais Ahmad Khan Leghari Wednesday told the National Assembly (NA) that no power distribution company (DISCO) was handed over to Inter-Services Intelligence (ISI), though special intelligence units comprising provincial officials, Federal Investigation Agency (FIA) and intelligence network were helping reduce losses and electricity theft and making recovery in the power sector.

Responding to supplementary question of MNA Rana Muhammad Hayat Khan during the Question-Hour in the National Assembly, the minister said, “We have experienced this in Multan and achieved positive results”.

Replying multiple questions regarding the power sector, Leghari said the government would not purchase electricity after March this year, as authorisation had been given for the creation of an Independent Electricity Market (IEM). He said the IEM would enable consumers to purchase electricity from multiple suppliers. The minister said contracts had been reviewed with over 28 independent power producers (IPPs), benefiting the national exchequer to the tune of Rs1,457 billion. He said since June last year, the per unit electricity tariff for industries had been reduced by eleven rupees and for the rest of the country by four rupees.

The energy minister stated that the electricity tariff for the EV charging stations had been reduced to Rs39 from Rs71 per unit. He said special units had been established to improve recoveries and check power pilferage. He said there was no proposal to revisit the slab system. “However, the government is working on a number of initiatives to reduce the burden on the common man,” he added.

Awais Leghari said advanced metering infrastructure had been introduced in all DISCOs and is being implemented in phases to ensure accurate billing and increase customer satisfaction. He said conditions for privatisation of power distribution companies would be met by the end of this month.

With respect to generation side, it was apprised that power purchase agreements with five IPPs had been renegotiated, and tariff terms with eight bagasse power projects revised. Moreover, negotiation with other IPPs/ Government Power Plants (GPPs) were in process, which would further ease financial burden on electricity consumers.

In reply to a question by Waseem Hussain, the Power Division stated in the National Assembly that the K-Electric was authorised to collect eight different taxes from its consumers. K-Electric collected Rs102.43 billion from customers in the past one year as normal GST, K-Electric customers paid Rs3.14 billion as additional GST, Rs11.87 billion as further GST, K-Electric collected Rs1.83 billion as retail GST from customers, consumers paid Rs30.26 billion as income tax, K-Electric collected Rs61 billion as withholding net metering and Rs1.15 billion as TV licence fee from customers.

This tax is applied as per notification of the Government of Sindh under sections 96, 100, and 138 of the Sindh Local Government Act, 2013 and the Karachi Metropolitan Corporation [Collection of Municipal Utility Charges and Taxes] Rules, 2022.

In a written reply to another question by MNA Tahira Aurangzeb, the Petroleum Division stated that no quantity of oil was being borrowed by the incumbent government from any country.