LAHORE: As rising electricity bills continue to affect the inflation-weary masses, independent power producers (IPPs) have refused to reduce electricity rates including capacity charges, sources said. Geo News on Sunday.
The IPPs, according to Pakistan Electric Power Company (Pepco) sources, want the government to reduce the tariffs of their power plants, which account for 52% of the total number of power plants, and withdraw the 38% “unjustified” tax on electricity bills.
The current government is in talks with IPPs to renegotiate contracts amid heavy criticism it has received over “unsustainable” electricity tariffs – the highest in the region.
Since coming to power in February, the coalition government led by Prime Minister Shehbaz Sharif has been in the spotlight for sky-high electricity tariffs that have further burdened the inflation-weary masses.
Rising electricity tariffs have fueled social unrest and stalled industry in the $350 billion economy, which has shrunk twice in recent years as inflation hit record highs.
“The current electricity pricing structure in this country is not sustainable,” Awais Leghari, the federal minister in charge of the Power Division, told Reuters in an interview last week.
The center has reiterated its commitment to address power issues which also include electricity theft, line losses etc.
However, IPP owners say the government should first abolish taxes and reduce the rates of its power plants before coming to negotiations.
They further indicated that they would turn to the International Court of Arbitration in the event of any coercion in the said matter.
