———– Says termination of contracts with five IPPs to reduce power cost, bring relief to consumers
———– Adds closure of IPPs will reduce electricity bills and save billions
———– Asserts relief to power consumers is among top priorities of govt
Staff Report
ISLAMABAD: Federal Minister for Information Attaullah Tara said on Friday the government had terminated contracts with five independent power producers (IPPs).
He said termination of contracts with the five IPPs would help bring down the electricity prices leading to a positive impact on the economy as well.
Speaking on the National Assembly floor on calling attention notice, he stated that reduction in electricity prices was PM Shehbaz Sharif’s first and foremost priority. He said contracts with another eight power producers were on the cards.
He also mentioned that NEPRA reduced 86 paisa per unit on fuel price adjustment.
He highlighted the federal government’s people friendly measures including Rs50 billion subsidy for consumers using up to 200 electricity units while government provided Rs276 billion subsidy upto 300 units every year.
Tarar mentioned that K-Electric was being provided a subsidy of 174 billion while lifeline and non-life line consumers were already being provided subsidy annually. However, users were given additional subsidies this year. The government was more focused on the issues of power, he asserted. Attaullah Tarar stated that fuel cost adjustment and closure of IPPs would reduce the electricity bills.
Earlier, The Federal Government has decided to terminate contracts with five Independent Power Producers (IPPs).
Speaking to the Federal Cabinet Session, Prime Minister Shehbaz Sharif stated that the government was working tirelessly to resolve the issues related to IPPs for the last seven months.
He mentioned that President of Pakistan Muslim League (N) has been focused on resolving the matter. He also noted that all relative ministries have worked day and night to bring resolve to the issue.
Shehbaz asserted that a task-force was established regarding the IPPs that was led by the Owais Leghari.
He informed that in the first phase, they have terminated contracts with five IPPs. He emphasised the importance of transparency, saying it would be unjust not to share the facts.
Under the agreement, the IPPs whose contracts had been terminated including Rousch Power, Saba Power, LALPIR, HUBCO and Atlas Power, would be liable to receive their arrears sans mark-up.
It was told that the Rousch Power unit was established under the Build, Own and Operate (BOP) basis, so its ownership would be transferred to the government for its onward privatisation by the Privatisation Commission. The ownership of the rest four IPPs would remain with their respective owners and after the contract termination, the government would not be liable to pay any charges.
