In an effort to alleviate the financial burden of capacity payments on electricity consumers, the government is proposing a new plan that could lead to a reduction in electricity prices by Rs10 per unit. Official documents indicate that discussions are underway with independent power producers (IPPs) to adopt a “give electricity, take money” or “take and pay” policy.
Read More: Latest October Price Update for Honda CD 70 2024 Model
This new approach would ensure that payments are made solely to power companies that generate electricity, eliminating the existing practice of making capacity payments to idle power plants. The government’s task force estimates that this policy could result in savings of up to Rs948 billion annually, translating to relief of approximately Rs9.70 per unit for consumers.
Currently, consumers are burdened with annual capacity payments amounting to Rs1,916 billion. If the negotiations with existing IPPs are successful, the proposed reduction in capacity costs could provide substantial relief to electricity users nationwide.
