In a bid to ease the burden of capacity payments on electricity consumers, the government has prepared a new plan that could reduce electricity prices by Rs10 per unit.
According to official documents, discussions are ongoing with independent power producers (IPPs) to implement a "give electricity, take money" or "take and pay" policy.
Under this plan, payments will only be made to power companies that generate electricity, eliminating the current system of capacity payments to idle power plants.
The government’s task force has projected that this policy could save up to Rs948 billion annually, providing relief of Rs9.70 per unit to consumers.
Currently, consumers are burdened with Rs1,916 billion annually due to capacity payments.
If the ongoing discussions with existing IPPs succeed, this reduction in capacity costs will offer significant relief to electricity users across the country.
