WEBDESK: In a major move to reduce electricity prices, nine bagasse-based power plants in Pakistan have filed requests for tariff cuts. This step is expected to provide relief to consumers by lowering the cost of electricity generated from bagasse, a byproduct of sugarcane.
Bagasse power plants have long been a crucial part of Pakistan’s energy mix, especially for rural and agricultural areas. By reducing their tariffs, the government can make electricity more affordable, especially for those in regions that rely on these plants for power.
Along with the bagasse plants, other Independent Power Producers (IPPs) are also seeking tariff cuts. Two prominent IPPs, Attock Gen Limited and Foundation Power Company, have joined the effort, submitting joint requests for tariff reductions.
A request has been made to revise the operation and maintenance indexing mechanism of IPPs, which, if approved, could significantly lower the cost of power production.
A request has also been made to revise the insurance cap of IPPs up to 0.90% with hopes of further reducing electricity prices.
As part of the ongoing process, NEPRA (National Electric Power Regulatory Authority) will hold a hearing on these tariff cut requests on April 16. If approved, these tariff cuts could have a positive impact on electricity prices across the country, benefiting both residential consumers and businesses.
JDW, Hamza Sugar Mills, and RY Mills Limited have filed a request for tariff cuts. Chiniot Power Limited, Almoiz Industries Limited, and Chenar Industries have also filed requests. Thal Industries Corporation and Shah Taj Sugar Mills have filed requests for tariff reduction.
A further request has been made to revise the fuel cost of bagasse-power plants’ tariffs along with a reduction of up to 50 percent in working capital.
Read more: Big relief: PM Shehbaz announces Rs 7.41 per unit reduction in electricity prices
