Nadeem Babar, the special assistant to PM on Petroleum said that a circular debt of power sector would be ended in December 2020, the government has taken the decision of shutting the old power plants that have come to its retirement period.
He made the statement while he was briefing the Standing Committee of the National Assembly on Privatisation during a session that was held under the chair of Syed Mustafa Mahmud.
Babar informed the NA body that the 19,000 megawatts transmission of electricity was made in the month of July 2018 while more than 4,000 MW power transmitted in the earlier year. He said that the federal government would be including the subsidy to the power sector in its budget.
The petroleum advisor said that Gencos are the most costly power plants while the government would be shutting the retiring power plants. The license to the Independent Power Producers (IPPS) would not be renewed after the completion of the agreement. The decision would be decreasing power prices up to Rs.1 and Rs.1.5, as per Babar.
The chairman of the committee was of the opinion that it is suggested to set up more firms for power generation and supplies.
The petroleum advisor also said that the government would be privatising Lahore Electric Supply Company (LESCO) and added that the power firms would be permitted to sell electricity on a co-operating basis while the experiment had also been done in the province of KP.