Month: August 2020

The government recently announced successful negotiations with Independent Power Producers (IPP) which can be heralded as a victory for the economy at large. Among other technical points agreed between the Government, and the IPPs, the most crucial point pertains to fixing Return on Equity (RoE) at certain fixed rates. We try to unbundle, and explain in simpler terms, what it all actually means, and how it will benefit the economy. The two key points are: RoE for local investors fixed at 17% with USD-PKR parity of 148, and no indexation…

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LAHORE: Prime Minister Imran Khan on Friday announced that the government has signed a new agreement with the independent power producers (IPPs) whereby the cost of electricity generation would be brought down and circular debt reduced. In a series of tweets, Premier Imran said, “I congratulate the nation because we are fixing the damaging structure we inherited in our power sector.” The IPPs, in the larger national interest under the 1994 and 2002 power policy, have voluntarily agreed to provide concessions, according to an official document available with The Express…

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Karachi — Pakistan’s apex court has allowed the government to collect a pending gas infrastructure development tax amounting to billions of dollars from fertilizer, power, chemicals and cement companies, according to the court’s verdict Aug. 13, a move that would help policymakers to use the funds to develop gas projects. But in 2016, the companies took the battle to court and appealed in the Supreme Court against the tax. As a result, the government had not been collecting the gas infrastructure tax since 2016. According to court documents, the outstanding amount…

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California’s energy-grid operator imposed rolling blackouts Friday evening for the first time in 19 years. With the rare move, the California Independent System Operator sought to preserve the stability of the system that provides power for tens of millions of residents and businesses. The last time grid managers implemented this kind of power cut was in 2001, when the state was in the throes of an electricity crisis. The effect was felt promptly in Northern California, as Pacific Gas and Electric Co. began shutting off power to large blocks of…

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ISLAMABAD: The government and Wind Power Producers (WPPs) have signed pacts, to be binding after different level approvals from power firms. The committee and Pakistan Wind Energy Association held a number of rounds of discussions with the Wind Association with a request to reduce generation tariff. All discussions have been confidential and without prejudice basis. This document shall not affect the parties’ rights and obligations under the agreements signed pursuant to the Government of Pakistan’s RE Policy 2006 (such as the IA, the EPA, the GoP Guarantee and the Site…

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