Govt to put IPPs payment burden on consumers
- By Web Desk -
- Aug 16, 2024
ISLAMABAD: The government has announced plans to shift the financial burden of payments to Independent Power Producers (IPPs) onto citizens already struggling with inflation, ARY News reported on Friday.
During a meeting of the National Assembly’s Standing Committee on Energy, the Secretary of Energy – Fakhre Alam Irfan – stated that both the payments to IPPs and the interest on the revolving loan will be borne by the public.
He stressed that the government is being pressurized by the International Monetary Fund (IMF), and cannot afford to increase circular debt. Despite discussions with the IMF, the organization remains firm on its stance.
Additionally, the government is moving forward with the privatization of Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GAPCO), and Faisalabad Electric Supply Company (FESCO), aiming to relieve itself of the financial strain these companies currently impose.
Power Division officials further highlighted that while NEPRA has approved an 11 percent loss allowance, distribution companies are still incurring significant losses, with Punjab’s DISCOs alone reporting losses of Rs 150 billion.