The Lahore Electric Supply Company (LESCO) has refunded Rs. 80 billion to consumers due to overbilling, as reported by Energy Minister Awais Leghari during a Senate Standing Committee on Power meeting on Friday.
Leghari noted that while there is no immediate plan for a uniform Rs. 20 reduction in electricity tariffs, smaller cuts of Rs. 0.20 are being considered, with positive changes expected in the coming weeks and no breaches of government agreements.
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He updated the committee on ongoing negotiations with Independent Power Producers (IPPs) to lower their profits, mentioning a task force reviewing power plant operations to determine which should remain open or be closed. The task force is also examining issues related to the market rates of furnace oil and coal for state-owned plants.
Additionally, committee members raised concerns about the pricing of bagasse power plants, noting inconsistencies in bagasse costs ranging from $75 to $356 per ton.
They emphasized the need for a review of the pricing mechanism, arguing that bagasse, a byproduct of sugarcane, should have a consistent and transparent rate.
NEPRA Chairman acknowledged that while a framework for bagasse and biomass was established in 2013, no pricing mechanism is in place, prompting the committee to call for an immediate review.
