Federal Minister for Power (Energy Division) Awais Leghari has announced that the government will no longer “force” consumers to buy electricity at rates set by the government.
Speaking to the media in Islamabad, Leghari said the government was exiting the electricity buying process from today and would no longer have the right to buy electricity from power producers or require them to sell electricity to the government.
He said electricity producers and consumers would be able to buy and sell power directly under a new trading system.
The minister said the new system would initially apply to large consumers, particularly industrial users, with consumers using more than 1 megawatt of electricity eligible in the first phase.
Businesses and industries will be able to purchase electricity from power plants on a competitive basis. Leghari said the government plans to auction 800 megawatts of electricity over the next five years. In the first phase, 400 megawatts will be offered for auction.
He said the electricity trading system would operate on the basis of transparency and totally replace the old electricity market.
Under the planned system, even ordinary consumers will be able to choose where they purchase their electricity. The government would no longer be able to purchase electricity and “force” it on consumers at government-determined rates.
Leghari added that Independent Power Producers have become controversial and the new electricity market will introduce greater competition.
The post Govt Ends Forced Sales of Expensive Electricity appeared first on ProPakistani.
