Seven IPPs propose tariff cut in Islamabad

Seven independent power producers (IPPs) have proposed a cut in electricity tariffs by up to Re0.50 per unit. They also plan to waive over Rs11 billion in late payment fees. However, their offer comes with a condition: the withdrawal of all ongoing legal actions and investigations related to their profits. The Central Power Purchasing Agency (CPPA) supports the IPPs in this request and has informed the National Electric Power Regulatory Authority (Nepra). The IPPs argue that their fuel and operation costs are already settled and have asked Nepra to drop its inquiries. One IPP representative stated that their tariff revision request is conditional on dismissing the legal cases against them. Another representative called for the end of investigations into their company. The CPPA's Managing Director indicated that any future savings from these agreements would be shared with the government to help lower costs for consumers. The negotiations are said to yield a potential tariff reduction of up to Re0.50. Nepra's discussions included various financial adjustments and mechanisms. So far, negotiations with these seven IPPs and others have secured financial benefits totaling Rs950 billion over the plants' operational lifetimes. A total of 29 IPPs have reached agreements, although some, like Halmore Power, have opted out. Nepra is expected to review the petitions before making a final decision.