ISLAMABAD: Some representatives of Independent Power Producers (IPPs) have expressed willingness to reduce power tariff and review power purchase agreements, Pakistan Today has learnt.
According to sources, during a meeting held between the representatives of IPPs and a committee constituted earlier by the Cabinet Committee on Energy, some IPPs agreed to the government’s stance of making the power sector sustainable.
Several issues pertaining to the IPPs, including heat rate test, foreign currency indexation for local investors, rescheduling/increasing the debt term, operation and management costs, return on equity etc. were discussed in detail on the occasion.
Sources said the committee has been holding discussions with the IPPs to have power tariff reduced and the power agreements reviewed.
“It is likely that a consensus will be developed among all stakeholders regarding a cut in power tariff, as the government is making all out efforts to help the power consumers get affordable electricity amid crisis caused by coronavirus,” an insider said.
On April 2nd, the Cabinet Committee on Energy had constituted a committee under the chairmanship of Power Minister Omer Ayub Khan to deliberate various viable and mutually acceptable options to make the power sector sustainable.
Subsequently, on April 13th, the CCoE shared a meeting notice, wherein it had invited the representatives of IPPs to discuss tariff related issues on the 16th.
Sources said that another round of talks with the stakeholders to discuss an appropriate mechanism and steps for tariff optimization/reduction would be held on Monday (20th April) at Private Power & Infrastructure Board (PPIB), Ministry of Energy.
