ISLAMABAD: Power Minister Awais Leghari announced on Friday that a special task force is currently examining the challenges with independent power producers (IPPs) to find mutually agreeable solutions, emphasizing that the government will not take any unilateral adverse actions.
Speaking before the Senate Standing Committee on Power, chaired by PTI Senator Mohsin Aziz, the minister stressed the importance of a careful approach. He noted that unaffordable tariffs have prompted a reassessment of estimated tariffs for upcoming projects like Diamer-Bhasha Dam and Chashma Nuclear’s C-5 to ensure their feasibility within the next 10-year planning in the Indicative Generation Capacity Expansion Plan (IGCEP).
Leghari warned that any rash actions could expose Pakistan to hefty penalties in international arbitration, citing the example of Reko Diq. He made it clear that the government is committed to working within the bounds of law and contractual obligations, ensuring transparency throughout the process.
Responding to questions, Leghari highlighted that the Muhammad Ali Commission had observed possible over-invoicing by some IPPs, leading to early recovery of investments. However, the PTI government had previously diverted the issue towards arbitration instead of conducting heat rate audits, leaving the government vulnerable to penalties.
Leghari mentioned that the task force is exploring several strategies, including offering net present value for remaining contractual returns, shifting some projects from “take or pay” to “take and pay,” and offering fixed O&M and returns for short-term projects.
The minister clarified that shutting down expensive projects totaling 1875MW could save Rs50 billion but would result in two hours of load shedding during peak summer, correcting earlier misinterpretations of his statement.
Nepra Chairman Waseem Mukhtar acknowledged a continuous decrease in electricity demand and stated that the regulator does not plan to add more capacity to the grid. Senator Shibli Faraz called for greater transparency in Nepra’s recent tariff adjustments and demanded detailed reports on power projects across the country.
Story by Khaleeq Kiani
