The government has called around six owners of the Independent Power Producers (IPPs) to Islamabad on Monday, September 2, for questioning and to provide evidence regarding alleged undue profits.
BR reported, citing sources, that the investigation into Independent Power Producers (IPPs) reaches its final stages and the Shehbaz-led coalition government is also using similar tactics employed by the previous administration in 2021 to apply pressure on IPPs.
Initially, teams gathered records from various plants, followed by questioning senior IPP executives in different cities. Now, the owners are being summoned to Islamabad for further discussions.
Sources indicate that this exercise aims to persuade IPP owners to support the country by agreeing to revised contract terms, given the current high electricity prices, which are proving unsustainable for industry and consumers alike.
In the first phase, IPPs established under the 1994, 2002, and 2006 policies have been presented with discrepancies in their documentation and the significant profits they have earned, which has reportedly unsettled many owners.
Despite assurances from Energy Minister Leghari that the government will not unilaterally alter IPP contracts, concerns remain about the use of pressure tactics to compel IPP owners to accept the terms proposed by negotiators.
Energy sector investors are concerned that the government’s approach may negatively impact investment. They argue that the handling of capacity payments could deter foreign investment for years. Addressing technical issues through pressure tactics risks undermining investor confidence, they said.
However, the government remains hopeful that it can secure some monetary concessions from the IPPs, which could be presented as a significant achievement.
