ISLAMABAD: Confirming no reduction in base electricity tariff so far, the government on Friday conceded that Rs1.90 per unit negative quarterly adjustment would fluctuate in line with the movement in interest and exchange rates while Rs1.71 per unit relief against higher petroleum levy may continue into the next fiscal year.

Speaking at a news conference, Power Minister Awais Ahmad Khan Leghari said all the independent power producers (IPPs) set up under the China-Pakistan Economic Corridor (CPEC) had the protection of the government framework, but discussions were “on track” for their debt reprofiling and conversion of imported coal-based plants to local coal.

“Whatever advantage becomes available through this process will be passed on to the consumers in future,” he said.

The minister said the International Monetary Fund and other development partners would have never supported price reductions had this been limited to renegotiations with IPPs. They were convinced through repeated consultations over power sector reforms that gave them confidence about the sustainability of the power sector and downward pressure on prices over the next 3-4 years.

Breakup of relief

Separately, a Power Division team told a public hearing called by National Electric Power Regulatory Authority (Nepra) that Rs1.71 per unit reduction against Rs10 per litre increase in petroleum levy would be in place for three months from April to June while another Rs1.90 per unit negative QTA for the second quarter of FY25 would also be applicable for the same three months.

Rs7.41 relief is for April-June thru routine QTAs, diversion of........

© Dawn Business