ISLAMABAD: Special Assistant to Prime Minister on Petroleum Nadeem Babar said on Wednesday that the circular debt of power sector will be ended in December 2020, whereas, the government has decided to shut old power plants came to its retirement period.
Nadeem Babar made the statement while briefing the National Assembly’s Standing Committee on Privatisation during a session held under the chair of Syed Mustafa Mahmud.
Babar apprised NA body that the transmission of 19,000 megawatts electricity was made in July 2018 while more than 4,000 MW power transmitted in previous year. He said that the federal government will include subsidy to the power sector in its budget.
The petroleum advisor said Gencos are the most expensive power plants while the government will shut retiring power plants. The license to the Independent Power Producers (IPPS) will not be renewed after the completion of the contract. The move will reduce power prices up to Rs1 to Rs1.5, Babar said.
The committee’s chairman said that it is recommended to establish more companies for power generation and supplies.
The petroleum advisor said that the government will privatise Lahore Electric Supply Company (LESCO). He added that power companies will be allowed to sell electricity on cooperate basis while the experiment had also conducted in Khyber Pakhtunkhwa (KP) province as well.