Islamabad, Sep 20: The Lahore Electric Supply Company (LESCO) has refunded Rs. 80 billion to consumers due to overbilling, as announced by Energy Minister Awais Leghari during a Senate Standing Committee on Power meeting.
While he noted that there isn’t an immediate plan for a uniform Rs. 20 reductions in electricity tariffs, smaller reductions of Rs. 0.20 are being considered. Leghari expressed optimism about positive developments in the coming weeks.
The minister also discussed ongoing negotiations with Independent Power Producers (IPPs) to lower their profits, stating that a task force is reviewing power plant operations to decide which plants should remain active or be closed. Additionally, the task force is examining state-owned power plants and assessing market rates for furnace oil and coal.
Committee members raised concerns about the pricing of bagasse power plants, noting significant discrepancies in bagasse costs, ranging from $75 to $356 per ton.
They emphasized the need for a consistent and transparent pricing mechanism for bagasse, a local byproduct of sugarcane. NEPRA’s chairman acknowledged the absence of a pricing mechanism since the framework for bagasse and biomass was introduced in 2013 and called for an immediate review of the situation.
