Five IPPs ready to terminate contracts, say officials
These independent power producers had entered into agreements with govt under a policy formulated in 1994 and 2002.
ISLAMABAD: Five independent power producers have agreed to terminate their agreements with the government, according to officials in the Power Division.
These independent power producers had entered into agreements with govt under a policy formulated in 1994 and 2002 under which they produced electricity and sold to the government.
Officials in the Power Division told media that after fulfilment of all the formalities these five IPPs would terminate the contracts after which payments to them in dollars would be stopped. However, the government would have to clear all their outstanding dues.
There are currently 101 independent power producers with whom the government signed agreements under the policies formulated on different occasions since 1992. The IPPs generating in powers under the 1994 and 2002 policy numbered 17.
The consumers in Pakistan have seen abnormal increase in the electricity tariff for the past a couple of years due to the costly electricity being produced by the private power producing companies.
It is also being alleged that political parties, business tycoons and even some politicians were the beneficiaries of the agreements with the companies.
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