18 more IPPs agree to govt's terms for cheap electricity

ISLAMABAD: The energy ministry has announced contracts with 18 new independent power producers (IPPs) including wind power units, for cheaper electricity in the country, ARY News learned Saturday.

According to the details on the development shared by sources, the government team has had successful deals with 18 new IPPs, including Kot Addu Power Company (KAPCO) for 1600 Mega Watt generation, for affordable electricy.

All 18 IPPs have agreed to signing government contracts out of which 17 are wind power units.

According to the contract, which is set to be signed between the government and these IPPs, slash in tariffs and other concessional terms have been concurred.

After the federal cabinet has consented to these contracts with IPPs, the official signing will take place instant, ARY News was told.

With these new 18 IPPs, the government has convinced about 41 IPPs, out of 47 that it talked to, for concessional terms and economical power supply.

READ: Energy ministry hikes electricty unit prices by Rs1.95

It may be noted that earlier last week, the energy ministry hiked electricity tariffs by Rs1.95 per unit which it claimed is due to a hefty circular debt thanks to previous governments.

We could jack the prices by Rs2.18 per unit but we did not want to “burden the masses” so we only increased 23 per cent in tariff, said the federal minister for energy Omar Ayub in a joint presser today accompanied by the federal planning minister Asad Umer and Prime Minister’s aide on energy Tabish Gauhar.

Ayub said the incumbent government has inherited the circular debt crisis for which it is binding on it to hike the tariffs and translate the impact on the masses. Due to the heavy debts in the energy sector, which he termed a minefield, we had no other option but to expedite clearing off the payables, he said.