ISLAMABAD: Pakistan’s Energy Minister Awais Leghari said on Thursday that the matter concerning Independent Power Producers (IPPs) is currently under review.
Speaking to the media, Leghari mentioned that various aspects related to IPPs are being evaluated. “We are assessing the remaining duration of IPP contracts and examining the financial outcomes, whether beneficial or detrimental,” he explained.
“We are also exploring the necessary mechanisms to phase out costly power producers and determining the associated costs,” the minister added.
He posed the question, “Can we afford the cost of terminating IPP agreements?”
Regarding future actions, Leghari affirmed, “Under the guidance of the Prime Minister, we will soon arrive at a decision.”
He also assured that electricity tariffs for all consumers will decrease starting from January.
When queried about IPPs, Leghari responded, “I do not make speculative statements like Sheikh Rashid.”
Independent Power Producers are private companies outside traditional utility structures that generate electricity for sale to both the government and end-users. A significant criticism of IPP contracts is their requirement for the government to make capacity payments, regardless of whether the electricity they generate is fully utilized or not.
