ISLAMABAD: The government is set to unveil revised agreements with Independent Power Producers (IPPs), promising significant reductions in payments. However, the specifics of amendments to the Implementation Agreements of five key IPPs remain unclear.
Negotiations, led by the Special Assistant to the Prime Minister on Power Muhammad Ali, involved private meetings in Rawalpindi with representatives from companies like Hubco, Rousch, and Nishat Group. Some plant owners expressed dissatisfaction over the pressure exerted during discussions, which involved officials from SECP, CPPA-G, and Nepra.
The revisions, driven by concerns over exorbitant capacity payments, could reduce the base tariff by up to Rs2 per unit. However, many IPPs are resisting the changes, with some even hinting at international arbitration. Despite the pushback, several IPPs, including Attock Gen and Liberty Dharki, have already agreed to voluntary reductions.
The government is also considering re-bidding tariffs for wind power projects as part of a broader strategy to lower overall electricity rates.
Story by Mushtaq Ghumman
