Electricity consumers across Punjab are set for modest relief on their bills following a significant reduction in the tariffs charged by two major government-owned thermal power plants, Quaid-e-Azam Thermal Power (Pvt) Limited (QATPL) and Punjab Thermal Power (Private) Limited (PTPL).
Sources suggest that the reduced costs from these plants will translate into lower end-user tariffs. “There will definitely be a reduction in the power tariff for electricity consumers in Punjab,” a source stated, clarifying that “the relief will be financed with profits earned by said two government-owned power companies.” Both companies reportedly curtailed profits and reduced non-developmental expenditures to facilitate the move.
The tariff cuts at the plant level, approved by the Punjab Cabinet, range between 30-40%. This provincial initiative mirrors recent federal government efforts to renegotiate contracts with Independent Power Producers (IPPs) for lower tariffs. “In light of the Punjab cabinet decision the provincial government would approach NEPRA for a reduction in power tariffs for these two plants so that these price reductions get permanence and are reflected in the new tariff.”
QATPL operates a 1,180 MW RLNG-based plant at Bhikki, Sheikhupura, established in 2015. PTPL, wholly owned by the Punjab government, runs a larger 1,263 MW RLNG plant at Haveli Bahadur Shah, Jhang. While the move promises welcome relief, sources indicated the overall impact on consumer bills may not be “too significant.”
The primary goal remains reducing the financial burden on citizens by leveraging efficiencies and profits from these strategically important provincial power assets. Securing NEPRA’s approval is the next crucial step to cement these reductions.
