Cabinet gives nod to eight IPPs settlement agreements to bring down power tariff

The federal cabinet in its meeting, with Prime Minister Muhammad Shehbaz Sharif in the chair, on Tuesday approved settlement agreements with eight independent power plants (IPPs) running on bagasse.

The meeting granted its approval on the recommendation of the Ministry of Energy and the Power Division.

These power plants included DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries and Chinar Industries.

After the approval of these agreements, the Central Power Purchasing Agency would contact NEPRA regarding a reduction in the power tariffs produced by these power plants.

As a result of these agreements, electricity prices for the general public would decrease and the national exchequer would benefit by Rs238 billion rupees, PM Office Media Wing said in a press release.

Addressing the meeting, the prime minister said the government was taking all possible steps to reduce electricity prices for the common man.

He emphasized that the national interests should always be prioritized in every decision and action and also mentioned that the promotion of the private sector and industries in the country was a key priority for the government.