By SKM
December 17, 2024
ISLAMABAD: The incumbent regime is all set to scale the Rs12 per unit tariff by March 2025 after the completion of talks with private IPPs, government power plants (GPPs) and wind and solar power plants.
The debt re-profiling of the loans for CPEC and government power plants and the methodology to slice down taxes on electricity bills is to be finalized by the end of February which will help yield relief of Rs9 per unit in the tariff and the shortfall in revenue would be arranged from other sectors of economy, a senior government official told Exclusivewaves.
In the first phase, the government terminated power purchase agreements 5 IPPs (M/s Hubco Power, M/s Rousch Power, AES Lalpir Power, Saba Power Plant and Atlas Power ) and now it has scratched down the contract of one IPP namely Pakgen Power Limited of 365 MW. In to to, the government has terminated the contracts of 6 IPPs so far.
“We will be able to reduce the power tariff by Rs3 per unit through talks with IPPs, GPPs, wind and solar power plants. And the debt re-profiling will help reduce the tariff by Rs4 per unit and the government’s functionaries want to reduce the taxes on electricity bills with an impact of Rs5 per unit.
So far, the official said, the government has saved Rs411 billion in the head of future capacity payments by terminating contracts of 5 IPPs, Rs238 billion after revised contracts with Bagasse-based power pants and would save Rs481 billion once take and pay mode agreements with 16 IPPs are signed. The total relief of Rs1130 billion, the consumers will have in the years to come in the remaining period of their contracts.
He said the take and pay agreement with 16 IPPs would help lower Re0.70-Rs1 per unit with the impact of Rs70-100 billion. The 16 IPPs would be paid the past capacity payments but they would be paid interest payments and excessive profits, IPPs made, would be re-adjusted. “The IPPs that would be made operational now under take-and-pay mode are Uch-I Power Limited of 586 MWs, Liberty Power Daharki Ltd 235 MWs, Kohinoor Energy 131 MWs, Fauji Kabirwala Power Company Limited 157 MWs, Attock Gen Limited (165 MWs), Engro Power Gen Qadirpur Limited 227 MWs, Foundation Power (Daharki) of 185 MWs, Halmore Power Generation Company 225 MWs, Liberty Power Tech Limited 200 MWs, Liberty Power Tech Limited 225 MWs, Narowal Energy Tech Limited 220 MWs, Nishat Chunian Power Limited 200 MWs, Nishat Power Limited 200 MWs, Orient Power Company 229 MWs, Saif Power Limited 229 MWs, Laraib Energy Limited 84 MWs and Uch-II Power Project of 404 MWs.” To a question, the official said that Halmore Power Generation Company has issued notice to the government on revising the contract based on take and pay mode. Halmore power generation is now being faced the forensic audit. And to this effect the required process has begun. Ends
