ISLAMABAD: Power Minister Awais Leghari announced on Friday that positive outcomes from negotiations with independent power producers (IPPs) are expected soon, with efforts underway for a gradual reduction in electricity prices. However, he cautioned that significant relief won’t come immediately.
While testifying before the Senate Standing Committee on Power, Mr. Leghari stated that the task force he leads, formed by the prime minister, has completed its review of the power sector and will soon share good news regarding the IPPs. He promised to update the Senate panel shortly, as he has been providing previous details.
The minister mentioned that the task force examined the rate of return on equity (ROE) and operation and maintenance (O&M) costs for both public and private power projects. They also evaluated the technologies used by various IPPs in constructing their plants, along with the investments and expenditures involved.
However, he reiterated that the government would not take unilateral actions regarding agreements with the IPPs; the process is being carried out in consultation with the power producers. He added that updates on consultations with the IPPs will be made public in a couple of weeks, including discussions about their profitability.
In response to a query, Mr. Leghari noted that around Rs80 billion had been refunded to Lahore Electric Supply Company (Lesco) consumers who were overcharged a few months prior.
During the committee meeting chaired by Senator Mohsin Aziz, public complaints about overbilling and poor service from electricity distribution companies were also discussed. Senator Palwasha Muhammad Zai Khan highlighted issues with incorrect meter readings, sharing her family’s ordeal of visiting Lesco offices 28 times in three months, facing misconduct from staff. She referred to the situation as part of a “mafia” and called for the Federal Investigation Agency (FIA) to intervene and set an example.
Senator Palwasha expressed concern that if her family faced such treatment, the general public must be suffering even more. Senator Aziz acknowledged the seriousness of the issue, emphasizing its public importance and the likely greater suffering of ordinary people.
A senior official from the power division agreed with the committee members and confirmed that actions had already been taken, including the transfer of the individual responsible for the issues and the cancellation of the faulty meter reading.
In response to Senator Palwasha’s complaints, Minister Leghari stated that such matters fall under customer care, which is not directly related to electricity distribution. He noted that there is a complaint system through a toll number (118), and all calls are forwarded to the distribution companies. He added that the government is working on a computerized system at the subdivision level to improve complaint resolution and emphasized that simply transferring staff isn’t the solution, as they aim to make substantial changes.
