Govt Ends Forced Sales of Expensive Electricity

Federal Minister for Power (Energy Division) Awais Leghari announced that the government will no longer compel consumers to purchase electricity at rates set by the government. Speaking in Islamabad, Leghari stated that the government would cease its role in buying electricity from power producers and require them to sell to the government, effective immediately.

He clarified that electricity producers and consumers would engage in direct buying and selling under a new trading system. Initially, the system would target large consumers, including industrial users, with those using over 1 megawatt of electricity eligible in the first phase. Businesses and industries would have the opportunity to buy electricity from power plants on a competitive basis.

Leghari disclosed plans to auction 800 megawatts of electricity over the next five years, with 400 megawatts to be offered in the first phase. The electricity trading system would operate on transparency and would completely replace the outdated electricity market. Under this new system, even individual consumers would have the ability to select their electricity provider.

The government would no longer purchase electricity and force it upon consumers at rates determined by the government. Leghari added that Independent Power Producers have become a point of controversy, and the new electricity market would bring increased competition.