ISLAMABAD, March 19: The government of Pakistan is planning to offer great relief of Rs 8 per unit for the electricity consumer after withdrawing huge incentives for the solar users. This announcement is due by March 23, celebrations by the government.
This tariff cut has come after the revised negotiations of agreements with the IPPs. The government has also got these arrangements in black and white by these IPPs.
This cut would be effective from April 2025, means the summer would come with a relief in power bills. Before this announcement an IMF approval is due, which from the sources has been confirmed.
Federal Govt Got it in Written
The federal government has obtained written assurances from the Independent Power Producers (IPPs) confirming that they voluntarily signed the Power Purchase Agreements (PPAs) and Implementation Agreements (IAs) without any form of duress, coercion, or intimidation.
These details were disclosed in joint documents submitted by the Central Power Purchasing Agency – Guaranteed (CPPA-G) and seven IPPs to the National Electric Power Regulatory Authority (Nepra) as part of their request for tariff reductions.
Read More: Nepra Receives Joint Plea of Tariff Reduction From 7 IPPs
The government has already paid a total of Rs 53 billion to these seven IPPs based on the revised agreements.
The payments were as follows: Liberty Power received Rs 5.272 billion, Narowal Energy Rs 9.680 billion, Nishat Chunian Rs 6.674 billion, Nishat Power Rs 9.633 billion, Engro Powergen Qadirpur Rs 8.041 billion, Saif Power Rs 6.490 billion, and Saphire Electric Rs 7.050 billion.
These seven IPPs, which operate under the 2002 policy, have filed a joint request for tariff reductions.
CPPA-G explained that to reduce consumer tariffs and ease the financial burden on the public.
The company and power purchasers mutually agreed to amend the existing agreements, introducing a “Hybrid Take & Pay” model, which is now awaiting approval from Nepra.
The agreements confirm that both parties entered into the contracts voluntarily, with full consent and no undue pressure.
Also Read: Negotiations with IPPs Fair, Transparent: Leghari Tells IMF, WB, ADB
The seven IPPs involved in the tariff reduction applications are: Nishat Chunian Power Limited, Nishat Power Limited, Narowal Energy Limited, Liberty Power Tech Limited, Engro Powergen Qadirpur Limited, Saphire Electric Power Limited, and Saif Power Limited.
