ISLAMABAD: The government has decided to close five independent power producers (IPPs) as talks have been started with others to rationalize their margin of profits.
According to media reports, during the ongoing talks, the IPPs showed flexibility to reduce their rates.
The minister for power division Owais Ahmed Khan Laghari told a TV channel that he would not disclose the names of the five IPPs that were being closed. He said that work was underway to finalize thale ratio the other IPPs would reduce their rates.
Officials said that as talks on the reduction of rates with the IPPs were finalized the details would be shared with the public.
Earlier, the government had announced that it cannot terminate agreements with IPPs signed by different governments in the past.
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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