ISLAMABAD: Minister for Power Division Sardar Awais Ahmed Khan Leghari Tuesday apprised the Senate that upfront tariff mechanism was being abolished in the country for the first time and competitive bidding process would be introduced for solar, small hydel, wind and biomass energy generation projects.
Winding up debate on an adjournment motion regarding the interim award issued by the London Court of International Arbitration in favour of IPPs, the minister said the Cabinet's Committee on Energy in a meeting chaired by the prime minister today decided that in future competitive bidding would be held for the power projects to ensure transparency.
The minister said in the past power plants were set up without any advertisement, adding that no contract had been given to the Independent Power Producers (IPPs) during the last four years.
The people, who had been involved in awarding such projects in the past, were objecting to the government policies, he added.
Awais said the government was making all-out efforts to meet energy requirements keeping in view the interest of the consumers.
He said the PML-N government had brought significant improvement in the power generation system. Currently electricity was being generated at the lowest rate in the world from RLNG and imported coal, he added.
He said price of electricity was gradually being decreased. However, there was a leakage of electricity worth Rs. 135 billion annually due to system constraints, he added.
Awais Leghari said the consumers had to face the burden of net hydel profit.
He said now the government was in a comfortable position and no agreement in power sector would be inked for the period of 25 years in future.
The government would also not purchase guarantee in future, he added.
The minister said under the 18th amendment, the provinces were also empowered to generate electricity in their respective areas. Regarding IPPs, he said the issue was serious as in the past power plants were set up without any competitive bidding.
He said Pakistan had appealed against the decision in the court and hearing would be held in London this month. All-out efforts would be made to save the public money.
The Attorney General office was also working on the issue, he said, hoping that the issue would be resolved amicably.
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