In talks with Independent Power Producers (IPPs), the government has saved Rs1.1 trillion, according to Minister for Power Division Awais Leghari on Thursday.

Speaking at the closing of the 4th International Hydropower Conference, which Energy Updates organized in cooperation with the Private Power Infrastructure Board (PPIB), WAPDA, and other interested parties, the minister stated that the government and IPPs had mutually extended the contracts for the benefit of Pakistan.

He claimed that consumers were no longer able to pay their electricity bills and that the government planned to completely restructure the power industry.

He went on to say, “We are also restructuring National Transmission and Despatch Company (NTDC).”

He explained that the government’s power sector reforms had resulted in a notable decrease in distribution businesses’ losses. According to him, these losses from July to November 2023 totaled Rs223 billion, but the same period in 2024 saw a drop to Rs170 billion.

He said out of a total of 10 Board of Directors (BoDs) of Power Distribution Companies (DISCOs), eight have been completely revamped, and not a single induction was made on a political basis.

According to him, the government was examining the several levies that are included in electricity bills in order to give customers the most relief possible.

He described a national uniform tariff as a significant obstacle, arguing that it is unjust to shift the burden from one business to another.

He said a competitive electricity market will be launched in March, where market forces would determine power tariffs and the government would play only a facilitating role.

The minister said that the demand for solar solutions was increasing due to the high cost of electricity. It is anticipated that the country’s net metering system will gain an extra 10,000–12,000 MW.

In 2017, he claimed to have implemented net metering throughout the nation. But according to him, the top class was enjoying net metering. “The country is experiencing a revolution in solar energy due to the high cost of electricity,” he continued.

Although the government calculates that the increase should only be Rs 1 per unit, K-Electric has requested a Rs 10 per unit increase in the rate from the power regulator.

Stressing the need for necessary decisions for sustainable development in the energy sector, the minister said the government was taking every possible measure to facilitate the public.