Tag: IPPS

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

PM’s Adviser Muhammad Ali is likely to take Charge of Privatization Commission

Admin
New-Project47

Prime Minister’s Adviser Muhammad Ali is likely to take charge of the Privatization portfolio, sources reveal. His key tasks will include privatizing power distribution companies (Discos) and state-owned gas companies, Sui Northern and Sui Southern, by unbundling them into transmission and distribution companies.¹ Ali’s experience as energy minister during the interim regime makes him an ideal candidate for the role. The government aims to address the significant losses incurred by state-owned companies, including Rs851 billion annually, and Rs600 billion by Discos, which also contribute to a monthly circular debt of…

Read More

PM Shehbaz Vows Further Reduction in Power Tariffs

Admin
Power-sector

ISLAMABAD: Prime Minister Shehbaz Sharif has assured that electricity tariffs will be further reduced for both domestic consumers and industries as part of ongoing reforms in the power sector. Chairing a review meeting on the energy sector, the prime minister expressed satisfaction over the progress of power sector reforms, stating that they are yielding positive results. He reaffirmed the government’s commitment to ensuring affordable and environmentally friendly electricity for the masses. Key Measures & ProgressRenegotiation with IPPs: Revising agreements with Independent Power Producers (IPPs) has contributed to the national economy…

Read More

Govt Revises Tariffs with 14 IPPs, Secures Rs813 Billion in Savings

Admin
New-IPPS1

ISLAMABAD: The government has successfully renegotiated tariffs with 14 Independent Power Producers (IPPs), securing Rs813 billion in savings for consumers and addressing circular debt amounting to Rs329 billion. As part of the agreement, the IPPs have agreed to return Rs31 billion in excess profits, a reduction from the initial Rs55 billion claim. Additionally, the government has decided to close investigations by the National Accountability Bureau (NAB) and the National Electric Power Regulatory Authority (NEPRA) against certain IPPs, including Nishat Power Limited, Nishat Chunian Power Limited, Liberty Power Tech Limited, and…

Read More