ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) Chairman on Tuesday barred participants from discussing the renewal of independent power producers’ (IPPs) contracts during a public hearing, stating that it was not the appropriate forum for such a debate.
During the hearing, interveners raised concerns about the capacity payments charged by IPPs and called for a forensic audit of their operations. The Chairman, however, redirected the focus away from contract renewals, while the businessmen running the IPPs faced criticism for inefficiencies that allegedly led to a multibillion-rupee burden on consumers due to violations of the economic merit order (EMO).
Appellants argued that NEPRA’s decisions, deemed “impugned” by the Islamabad High Court and a tribunal, resulted in higher electricity costs, potentially costing the public Rs3.3 billion. The tribunal recommended a third-party audit of the Central Power Purchasing Agency (CPPA) and the National Transmission and Dispatch Company (NTDC) to address the inefficiencies and non-compliance issues.
Story by Zafar Bhutta
