'IPP owners asked to revise PPAs or face consequences'

ISLAMABAD: Task Force on Independent Power Producers (IPPs) has completed its work, ARY News reported on Tuesday, citing well-informed sources.

According to details, owners of four independent power producers (IPPs) set up under the 1994 policy and another, established under the 2002 policy, have been warned of consequences if they don’t terminate the power purchase agreements (PPAs) voluntarily, the sources said.

The task force has asked the owners of the IPPs to end capacity charges payment and charge against the power supplied to the government only.

The Independent Power Producer owners have also been warned of forensic audit if they continue to go with the present PPAs, the sources said.

Earlier on September 22, the government sources made startling disclosures about the negative role of some of the country’s IPPs that have damaged the national economy.

The government sources have disclosed that some Independent Power Producers received billions of rupees without generating electricity with wrongful contracts. “The Government of Pakistan burdening consequences of the IPPs wrong contracts”.

Sources said that the IPPs, in comparison to Bangladesh and Vietnam, installed the similar capacity wind power plants with four-times expensive price.

“The Independent Power Producer also made over-invoicing in these contracts,” official sources said.