Govt Ends Forced Sales of Expensive Electricity

Federal Minister for Power (Energy Division) Awais Leghari has confirmed that the administration will no longer "force" consumers to purchase electricity at rates set by the administration.

Key points

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• Leghari continued that Independent Power Producers have become controversial and the new electricity market will introduce greater competition.
• Businesses and industries will be able to purchase electricity from power plants on a competitive basis.
• Under the planned system, even ordinary consumers will be able to choose where they purchase their electricity.

Speaking to the media in Islamabad, Leghari remarked the administration was exiting the electricity buying process from today and would no longer have the right to purchase electricity from power producers or require them to sell electricity to the administration. October Electricity Bills May Growth.

He remarked electricity producers and consumers would be able to purchase and sell power directly under a new trading system.

In practice, the minister remarked the new system would initially apply to substantial consumers, particularly industrial users, with consumers using more than 1 megawatt of electricity eligible in the first phase.

Businesses and industries will be able to purchase electricity from power plants on a competitive basis. Leghari remarked the administration intends to auction 800 megawatts of electricity over the next five years. In the first phase, 400 megawatts will be offered for auction.

He remarked the electricity trading system would operate on the basis of transparency and totally replace the old electricity market.

Under the planned system, even ordinary consumers will be able to choose where they purchase their electricity. The administration would no longer be able to purchase electricity and "force" it on consumers at government-determined rates.

Leghari continued that Independent Power Producers have become controversial and the new electricity market will introduce greater competition. Stay Connected with ProPakistani.

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In short, govt Ends Forced Sales of Expensive Electricity is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.