The federal government has decided to lower electricity prices after saving money through renegotiated agreements with Independent Power Producers (IPPs). This decision comes as part of an effort to reduce the burden of high electricity costs on consumers.
During a recent cabinet meeting, officials discussed ways to pass these savings on to the public. The government had previously chosen not to reduce fuel prices, despite recommendations for a cut of up to Rs13 per liter. Instead, these funds will now be used to lower electricity bills.
Although the exact amount of the tariff reduction has not been revealed, estimates suggest that consumers can expect a notable drop in their electricity costs. The prime minister is expected to make an official announcement in the coming days.
A plan presented to the International Monetary Fund (IMF) included a proposed reduction of Rs2 per unit, made possible through savings from revised IPP contracts. Additionally, the government is considering increasing the petroleum levy to generate further revenue that could support electricity price cuts.
Meanwhile, the cabinet has also approved new contracts for power plants that run on bagasse, a sugarcane byproduct, as part of its broader strategy to improve energy efficiency and affordability. More details on these changes are expected soon as the government finalizes its plans to provide relief to electricity consumers.
