Tag: IPPS

Govt Faces Dilemma Over CPEC Power Plants in Circular Debt Settlement Plan

Admin
Power-Tariff

ISLAMABAD: The government is facing a critical challenge in distributing payments to Independent Power Producers (IPPs) under its Rs1,275 billion circular debt settlement plan, as Chinese IPPs operating under the China-Pakistan Economic Corridor (CPEC) have not agreed to revise their Power Purchase Agreements (PPAs). A senior Power Division official confirmed that while negotiations have progressed with many local IPPs to revise contracts for cost relief, the treatment of Chinese power projects remains a sticking point. “The dues owed to CPEC power plants have now soared to Rs48 billion,” the official…

Read More

Centre’s policies stalling Sindh’s energy sector growth: Sharjeel

Admin
Sharjeel-Memon

olds vast untapped resources capable of pulling Pakistan out of its persistent energy crisis, but federal government policies are stalling the province’s energy sector growth. Speaking to the media, Memon emphasised that respecting provincial autonomy and giving Sindh authority proportionate to its resources could spark an energy revolution. He pointed out that over the past six years, 30 million tonnes of coal from Thar had been supplied to IPPs, generating 31 gigawatts of electricity, lighting up over 3 million homes. “Thar coal can fulfil Pakistan’s power needs for decades,” said…

Read More

Senate Slams Power Division Over Loadshedding, Circular Debt, and IPP Contracts

Admin
IPPs-Project

ISLAMABAD: The Senate Standing Committee on Power voiced strong criticism on Wednesday over ongoing power outages despite surplus electricity, the unchecked rise in circular debt, and the increasing financial burden on consumers. Chairing the meeting, Senator Mohsin Aziz expressed dismay at the absence of Power Minister Sardar Awais Leghari, who was expected to address critical issues—particularly the controversial contracts with independent power producers (IPPs), which Aziz labelled as unfair to the public. Senator Shibli Faraz accused the Power Division of inefficiency and blamed it for passing inflated project costs and…

Read More

Govt Claims Rs35 Trillion Saved Through Revised Power Deals

Admin
Sahiwal-Power

The government of Pakistan claims to have saved a significant amount of Rs35 trillion through revised power deals. This development comes as a result of the government’s efforts to renegotiate power purchase agreements with independent power producers (IPPs). The revised deals aim to reduce the financial burden on the country’s power sector, which has been struggling with circular debt and other financial challenges. The government’s move is expected to have a positive impact on the economy and help reduce the cost of electricity for consumers. However, some critics argue that…

Read More

Govt’s IPP Deal Revisions Secure Rs1.3 Trillion in Savings Consumers to Benefit as Power Sector Reforms Progress

Admin
IPPs-Project

ISLAMABAD: The renegotiation of agreements with Independent Power Producers (IPPs) has resulted in lifetime savings of Rs1.3 trillion, with the government actively working to pass these benefits on to electricity consumers, the Power Division announced on Tuesday. Electricity consumers have been paying Rs2.5 to 2.8 trillion annually in capacity charges to IPPs, some of which received payments without generating electricity due to flawed past agreements. To address this issue, the government renegotiated contracts to lower capacity payments, leading to a Rs7 per unit reduction in electricity tariffs. Efforts are underway…

Read More