The Central Power Purchasing Agency (CPPA) has announced the successful completion of negotiations with 29 Independent Power Producers (IPPs) regarding tariff revisions. The discussions, which include both private and government-owned IPPs, mark a significant step toward addressing electricity pricing concerns. Further agreements with additional IPPs are expected in the coming weeks.

The National Electric Power Regulatory Authority (NEPRA) has also conducted hearings on tariff revision applications from seven IPPs, including Nishat Chunian, Nishat Power, Narowal Energy, Liberty Power, Engro Powergen, Sapphire Electric, and Saif Power. These hearings are part of the broader effort to finalize tariff adjustments.

During the hearings, representatives from Nishat Power called for the withdrawal of all pending legal cases. NEPRA officials clarified that cases currently under review by the Islamabad High Court would be decided by the court. Meanwhile, Narowal Energy’s representative proposed the introduction of a mechanism to regulate furnace oil prices.

CPPA officials anticipate a reduction of 50 paisas per unit in electricity tariffs as a result of the agreements with the seven IPPs. This reduction is based on last year’s reference value generation and is expected to provide some relief to consumers.

However, concerns remain among consumers regarding the overall impact of the agreements, particularly in light of the existing Rs. 2 trillion capacity payments. A journalist raised allegations of coercion against IPPs, referencing a letter sent to the Prime Minister. CPPA officials denied the allegations, emphasizing that the government has the right to negotiate with IPPs to ensure fair pricing.

NEPRA has completed its hearings on the tariff revision applications and will now review the data before issuing a final decision.