The Ministry of Finance and the Ministry of Energy are considering various proposals to provide relief in electricity bills.

Sources told Raised by Numbers that a proposal has been made to make a lump sum payment of up to Rs. 4 trillion for capacity payment obligations.

Sources added that if the government makes a lump sum payment to Independent Power Producers (IPPs), significant relief can be provided in electricity bills. The proposal suggests that payments to IPPs for the next three to five years should be consolidated to reduce the burden of payments and circular debt.

According to sources, making lump sum payments to IPPs could reduce more than Rs. 5 per unit of electricity.

The Ministry of Energy has proposed to the Ministry of Finance to consolidate the total amount and then provide it to the Ministry of Energy so that lump sum payments can be made to IPPs.

Sources stated that the Ministry of Finance has made the relief in electricity bills conditional on the approval of the IMF. Prime Minister Shehbaz Sharif has been informed of these proposals, but no final decision has been made yet.

According to sources, officials from the Ministry of Finance and the Ministry of Energy have been working together since last week to provide relief in electricity bills.