By Asad Cheema
ISLAMABAD: As electricity prices continue to surge, the government has decided to extend the scope of negotiations with independent power plants (IPPs) to cover hydel and gas-based projects as well in an effort to slash tariffs.
Earlier, the Pakistan Tehreek-e-Insaf (PTI) government had started negotiations with the IPPs to review the dollar indexation clause. A cap was placed to control the electricity prices rising with further depreciation of the rupee.
The current caretaker government has continued negotiations with wind energy producers. Now, it has decided to talk to hydel and gas-based IPPs as well.
It directed the Power Division in a recent meeting of the Cabinet Committee on Energy (CCOE) to come up with a separate summary.
The cabinet body told the Power Division to initiate a separate case for engaging with the remaining IPPs, including those dealing with hydel power that did not sign a memorandum of understanding (MoU).
During discussions, according to sources, CCOE members noted that the scope of negotiations should not be restricted to wind or bagasse-based power plants but hydel and gas-fired IPPs may also be included.
They observed that since the summary carried a proposal for extending the scope to the remaining bagasse-based plants, therefore, a separate summary would be required rather than adding hydel and other IPPs to the existing summary. The CCOE agreed to the proposal.
The energy committee was informed that the Power Division had submitted a summary titled “Implementation of Master Agreements and PPA amendments with Wind Power Producers” on May 25, 2023. The CCOE considered the summary and directed the Power Division to chalk out a new strategy to continue to engage with 14 wind power producers to achieve savings for consumers and reduce costs.
