Sindh to set own electricity tariffs through SEPRA

KARACHI: Sindh Minister for Energy, Planning and Development Syed Nasir Hussain Shah has said that providing affordable electricity to businesses and the public is the vision of President Asif Ali Zardari and PPP Chairman Bilawal Bhutto Zardari, with full support from Chief Minister Murad Ali Shah.

Speaking at the Multi-Stakeholders Conference on Competitive Electric Market in Pakistan, Shah said the Sindh Transmission and Dispatch Company (STDC) and the Sindh Electric Power Regulatory Authority (SEPRA) will provide cheaper electricity than K-Electric (KE).

He said electricity will be produced in Sindh, transmitted through STDC, and priced by the Sindh government instead of the National Electric Power Regulatory Authority (NEPRA).

SEPRA’s staff has already been hired, and its formal notification will be issued this month. The first supply will be given to the K-IV project grid, focusing on industrial and economic zones.

Shah added that hybrid energy parks will help reduce tariffs and that Sindh is following global models to solve power sector issues. He said high capacity charges paid to Independent Power Producers (IPPs) can be reduced by boosting industrial production. Some IPP contracts have been reviewed, giving relief to consumers.

He also said Sindh has no representation on KE’s board and has asked the federal government to allow two provincial members. The province has signed an agreement with KE for solar power supply and urged the utility to avoid using expensive fuel-based power when solar energy is available. Related initiatives can be read at Renewables First news.

The conference, organised by Renewables First and the Pakistan Business Forum (PBF), discussed moving from the current single-buyer system to a competitive power market.

Speakers said the Competitive Trading Bilateral Contracts Market (CTBCM), approved years ago by the ECC and NEPRA but still not implemented, is crucial for lowering electricity costs.

It should be noted that the Sindh government has been actively working on energy reforms, including renewable energy projects and provincial control over power pricing. Earlier this year, Sindh signed agreements with multiple investors for wind and solar power generation in Jhimpir and Thatta. The province is also developing hybrid wind-solar parks to reduce reliance on costly imported fuel.

Officials have repeatedly criticised the monopoly of KE and called for more provincial say in its operations, especially in tariff setting and supply planning. Additional context on Sindh’s energy initiatives can be found at Renewables First reporting.