On Monday, former federal minister Dr. Gohar Ejaz unveiled a strategic plan aimed at reducing electricity prices by Rs. 14 per unit for consumers across Pakistan. The proposal involves transitioning the contracts of 40 Independent Power Producers (IPPs) to a Take-and-Pay model, which bases payments on the actual electricity produced rather than fixed charges.

Dr. Ejaz highlighted that this shift could result in savings of Rs. 1 trillion, or Rs. 9.70 per unit, for Pakistani consumers. Furthermore, the reduction in electricity costs would lead to a decrease in other charges, such as distribution and taxes, by an additional Rs. 4 per unit, culminating in total savings of Rs. 14 per unit.

The former minister noted that the Task Force has conducted thorough investigations and analyses, and negotiations with the IPPs are currently underway. This potential reduction in tariffs is eagerly anticipated by domestic consumers, commercial industries, and farmers throughout the country, who are looking forward to the financial relief.

In related development, five IPPs have decided to terminate their contracts with the government, signaling a shift in the energy sector’s landscape.