Tuesday, June 28, 2022

‘Successful talks between IPPs, govt to bring an end to circular debt’

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KARACHI: Chairman of the committee probing Independent power producers (IPPs) case, Muhammad Ali, on Monday said that successful negotiations between IPPs and the federal government would bring a halt to rising circular debt, ARY NEWS reported.

Speaking during ARY NEWS programme, Power Play, he said that the IPP probe committee covered the entire power sector and pointed out excessive payments to the power plants in the name of fuel and maintenance.

“Both government and IPPs have agreed upon resolving the issues with negotiations,” he said adding that committee probing the IPPs’ matter gave options of resolving the matter either through talks or conduct a forensic audit of the power producers.

He said that if negotiations with power producers prove a success then it would be beneficial for the country. “It will not only bring down the power tariff but will also bring a halt to a rising circular debt in the country,” he said.

Read More: Revisiting contracts with IPPs to help reduce circular debt: PM Imran

“After successful talks, we will apprise the NEPRA regarding the details,” he said.

The chairman said that the government would sign an agreement with IPPs for 25 to 30 years and currently 95 percent of the power producers have signed an MOU with the government.

“Talks are ongoing on five to six more MOUs,” he said adding that a final report on the matter would be submitted to the government next week.

He further said that they also had to sort out the matter of power distribution in the country as it could not be controlled from Islamabad.

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