Government to Auction Surplus Electricity, Says Minister Awais Leghari
Consumers and Power Companies will Directly Negotiate Electricity Prices Soon. The new policy is likely to be implemented within this year. Thus, the year 2025 will allow the citizens to buy electricity directly from the power companies.
Minister for Power Sardar Awais Leghari, addressing an event in Islamabad, announced the government’s plan to auction surplus electricity in the country. This surplus electricity will be provided to the industries. This initiative aims to stimulate industrial growth and create new employment opportunities across Pakistan.
He emphasized that surplus electricity would be made available competitively to ensure maximum benefit for the economy and the industrial sector. The Minister also discussed the recently introduced National Electric Vehicle (EV) Policy, which aims to encourage the adoption of electric vehicles across the country. He stated that electricity tariffs for EV charging stations have been significantly reduced to make electric vehicles more affordable and accessible for the public.
This step aligns with the government’s vision of promoting sustainable energy solutions and reducing environmental impact. Minister Leghari highlighted several other reforms in the energy sector, including efforts to reduce electricity tariffs, eliminate circular debt, and address inefficiencies in the current pricing system, which he described as unsustainable.
Agreements with Independent Power Producers (IPPs)
Talking about IPPs he said that agreements with Independent Power Producers (IPPs) are being revised to ensure transparency and sustainability, and similar revisions will be made with government-owned IPPs in the next phase. The Minister announced that by 2025, the government would no longer oversee electricity trade. Instead, consumers and power companies will directly negotiate electricity purchases, fostering competition and benefiting all stakeholders.
He also mentioned that industrial estates and economic zones would soon have the autonomy to manage their own power distribution systems. This initiative will curtail inefficiencies and promote industrial activity.
He highlighted that privatization of electricity distribution companies is also underway, and efforts are being made to reduce the tax burden on electricity consumers. Discussing coal-based power plants operated by Chinese companies, the Minister said these plants would transition from imported coal to locally mined coal from the Thar region.
This shift will reduce import costs while utilizing domestic resources effectively, supporting the local economy and promoting energy self-reliance. In his concluding remarks, Minister Leghari reiterated the government’s commitment to ensuring that surplus electricity benefits industries, fostering economic growth, and advancing Pakistan’s energy sector through sustainable and innovative reforms.
