Govt Completes Revised Power Contracts With 29 IPPs

The Central Power Purchasing Agency (CPPA) has announced the completion of negotiations with 29 Independent Power Producers (IPPs) regarding tariff revisions. Further agreements with additional IPPs are expected in the coming weeks. CPPA has concluded discussions with 29 IPPs, including those owned by the government. The National Electric Power Regulatory Authority (NEPRA) 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. Representatives from Nishat Power demanded the withdrawal of all pending legal cases.NEPRA authorities stated that cases challenged in the Islamabad High Court would be decided by the court. Narowal Energy’s representative called for a mechanism to regulate furnace oil prices. CPPA officials anticipate a 50 paisa per unit reduction in tariffs due to the agreements with the seven IPPs.This reduction is based on last year’s reference value generation. Consumers questioned the overall relief and the existing 2 trillion rupee capacity payments. A journalist raised concerns about allegations of coercion against IPPs, citing a letter to the Prime Minister. CPPA officials denied any coercion and emphasized the government’s right to negotiate with IPPs. NEPRA has completed hearings on the IPPs’ tariff revision applications. The authority will review the data and issue a decision later.