‘Government will unveil power sector reform plan in three weeks’

The detailed reform plan will include expected reduction in cost of generation through revised agreements with power producers, and improvement in transmission and distribution systems

ISLAMABAD: Federal Minister for Energy Omar Ayub Khan said on Monday that the government would announce full details of the savings in power generation cost through ongoing review of energy contracts in about three weeks, a national daily reported.

Speaking at a press conference, the minister said that with circular debt estimated to go beyond Rs 2.7 trillion by end of current fiscal year, the government would unveil a detailed reform plan for the power sector including the expected reduction in cost of generation through revised agreements with power producers, improvement in transmission and distribution system. He informed that the working and assessments were in progress, adding that no previous government ever tried to review power sector problems to resolve them.

He said that most of the agreements with Independent Power Plants (IPPs) under 1994, 2002 and wind power plants of 2006 had been reviewed and its detailed computations and savings would be made available as well, along with similar revisions in the power projects owned by the government.

He said that the plan would address the flow in circular debt that had gone beyond Rs 2.2 trillion, and that the government would show performance in sectors of economy to improve transmission and distribution system to ensure competitive tariffs to the industry and agriculture to help them stand on their own feet.

1 COMMENT

  1. Suggestion for the Government for Reforms of the Energy Sector. The energy sector is all based on heavy reliance to the Occurance of Climate Change in Pakistan.
    First of all Pakistan imports fuel Forex sent by the Overseas Pakistanis who send their hard earned money to their family.
    My humble suggestion to the Honorable Government for Reforms of the Energy Sector which would be by Climate Change. No import of Euro 4, 5 fuel for emissions to our environment. It is funny the Ministry of Climate Change and the PSO jointly launched the Euro 5 fuel. Our transport suface transport buses, rail/train locomotives, Engines has to come on Hydrogen gas produced locally for cars, buses, trains, generators etc. Ambulances, trucks all, even aircrafts. The Hydrogen gas will emit Zero emissions, have excellent propulsion of the engines, trains, cars, trucks etc.
    Toyota has already launced buses in Japan on Hydrogen and other gases which has zero emissions. Hence no Tsunami, No Heavy Rain Floods. Karachi is at the verge.
    Stop commissions from Euro family of fuels. Those who import has to answer the Climate Change Ministry.

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