ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has cautioned against the forced renegotiation of power sector contracts, emphasizing the potential future repercussions. Nepra Member Law Amina Ahmed stressed the legal and practical constraints of revisiting closed transactions with independent power producers (IPPs) at a public hearing regarding an additional Rs2.63 per unit fuel cost for electricity consumed in June.
Ahmed highlighted the negative impact of campaigns against contractual obligations and advised that any perceived mistakes in contract agreements should be formally addressed rather than reopening settled deals. She also underscored the need for distribution companies (Discos) to adopt emerging technologies, such as solar power and storage batteries, to ensure their survival amidst evolving energy markets.
Nepra’s Technical and Consumer Affairs Member Rafique A Shaikh criticized media outlets for misrepresenting the extensions of IPP contracts, clarifying that these extensions are based on technical needs without increasing tariffs.
The Central Power Purchasing Agency’s CEO Rehan supported this view, explaining that criticism of IPP contract extensions is misplaced as these do not affect tariffs.
Nepra Chairman Waseem Mukhtar advised power companies to study the impact of industries adopting solar power solutions, suggesting that Discos need to adapt to new technologies and market conditions to avoid potential shutdowns.
The regulator also approved an additional fuel cost adjustment of Rs2.63 per unit for June, resulting in an extra Rs34.38 billion being charged to consumers in the next billing cycle.
Story by Khaleeq Kiani
