Islamabad, Sep 27: Govt to Revised IPP Agreements for Lower Electricity Costs Soon
Independent Power Producers (IPPs) faced pressure to accept new contractual terms that could lead to a reduction in the base electricity tariff by Rs. 2 per unit, according to a report by Business Recorder.
Representatives from major companies, including Hubco, Rousch, Atlas, Nishat Group, and Saba Power, met with the Task Force led by Minister for Power Awais Leghari.
Despite some discrepancies in the data presented, many plant owners reluctantly agreed to the revised terms.
Several companies, such as Attock Gen, Liberty Dharki, and Gul Ahmad, have already implemented reductions, while negotiations are ongoing with others. It’s noteworthy that 33 IPPs received Rs. 979.3 billion in capacity charges during FY24, even when they produced minimal or no electricity.
The discussions also included legal disputes involving 12 IPPs at the International Court of Arbitration, with the government alleging overpayments totaling Rs. 50 billion.
Minister Leghari indicated that positive developments regarding revised IPP agreements could be expected in the coming weeks but dismissed the possibility of significant tariff cuts.
