The Lahore Electric Supply Company (LESCO) has refunded Rs. 80 billion to consumers following incidents of overbilling, Energy Minister Awais Leghari informed the Senate Standing Committee on Power on Friday. While a uniform reduction in electricity tariffs by Rs. 20 is not immediately feasible, Leghari mentioned that efforts are underway to implement smaller reductions of Rs. 0.20.

He assured the committee that positive developments are anticipated in the coming weeks, with no breaches of government agreements.

The minister also briefed the committee on ongoing negotiations with Independent Power Producers (IPPs) aimed at reducing their profit margins. A task force is currently evaluating the operations of power plants to decide which should remain operational and which should be decommissioned.

This review includes state-owned power plants and closely examines issues related to furnace oil and coal pricing in the market.

During the meeting, committee members expressed concerns over the pricing of bagasse power plants, noting discrepancies in costs ranging from $75 to $356 per ton. They urged a review of the pricing mechanism, emphasizing that bagasse, a byproduct of sugarcane, should have a consistent and transparent rate.

The Chairman of the National Electric Power Regulatory Authority (NEPRA) acknowledged that while a framework for bagasse and biomass was introduced in 2013, there is currently no mechanism to determine its price. The committee called for an immediate review to address this issue.