ISLAMABAD (Dunya News) - Federal Minister for Energy Awais Ahmad Khan Leghari has announced that the government is effectively withdrawing from electricity procurement, allowing consumers to purchase power directly from producers under a competitive market-based system.
Speaking to the media in Islamabad, Leghari said providing affordable electricity to consumers remained the government’s priority.
He said 800 megawatts of electricity would be auctioned over the next five years, with 400MW being offered in the first phase. Businesses and industries will be able to purchase electricity directly from power plants on a competitive basis.
The minister said the government currently purchases electricity under an existing system and supplies it to consumers, adding that questions had long been raised about the terms and conditions governing power procurement.
Leghari said the government would no longer purchase electricity under the previous arrangement, and electricity producers and consumers would be able to trade power directly.
He said the new electricity trading mechanism would be based on transparency and would initially apply to industrial and large consumers.
According to the minister, an electricity market will gradually develop under the new system, eventually allowing ordinary consumers to choose where they purchase their electricity.
He said the government would no longer purchase electricity and sell it to consumers at rates determined solely by the government.
Leghari said consumers using more than one megawatt would benefit from the system in the first phase. He added that access to cheaper electricity would help Pakistani industries remain competitive in international markets and support exports.