KARACHI: An independent power producer (IPP) has announced that it is submitting proposals to the federal government to lower electricity prices and adjust its rate of return from US dollars to the local currency. This comes amid growing pressure from the public and the business community to review power contracts to end unjustified capacity payments.
At a news conference on Wednesday, Shaharyar Chisti, the chairman of Pak Asia Investment, the firm that owns Liberty Power, stated that lowering electricity costs is a necessary step toward helping the public. In addition, he requested that the power plants figure out how to lower the cost of electricity. In addition, he expressed interest in changing from capacity payments denominated in dollars to transactions conducted only in rupees and offered to renegotiate the company’s contract with the government.
To lessen the financial strain on the nation, the corporation has also made suggestions about cutting its profit margins.
According to him, the system needs to be reexamined because the viability of businesses that produce power is impacted by excessive electricity rates. Fuel expenses also account for a sizeable amount of capacity charges.
He made the argument that energy prices would drop much more if the government’s gas development levy were eliminated.
Imran Ahmed, the CEO of Liberty Power, stated that the plant runs on raw gas that is obtained directly from nearby gas sources. According to him, Liberty Power might produce electricity at a reduced expense if the government guarantees that raw gas is sourced from alternative fields.
