The federal government will soon announce new agreements with Independent Power Producers (IPPs), aiming to reduce electricity costs and address longstanding financial issues. IPP owners have been persuaded to accept revised terms that could lower the base electricity tariff by Rs. 2 per unit.
According to a report by Business Recorder, key players in the power sector, including companies like Hubco, Rousch, Atlas, Nishat Group, and Saba Power, recently met with a Task Force led by Minister for Power Awais Leghari. While some IPP owners expressed reluctance due to discrepancies in the figures provided, they have reportedly agreed to the new contract terms.
Several companies, such as Attock Gen, Liberty Dharki, and Gul Ahmad, have already made reductions, while others continue discussions with government officials.
It is noteworthy that in the fiscal year 2024, 33 IPPs received Rs. 979.3 billion in capacity charges, despite producing minimal electricity. This has prompted the government to renegotiate terms to ensure more efficient and cost-effective power production.
The negotiations also addressed ongoing legal disputes with 12 IPPs at the International Court of Arbitration, where the government is seeking to recover overpayments amounting to Rs. 50 billion.
