In an interested development, seven independent power producers (IPPs) have offer to reduce electricity rates by Rs0.50, along with waiving off Rs11 billion in later payment surcharges on the condition that government stops legal action against them.
National Electric Power Regulatory Authority (NEPRA) received a joint tariff revision request by the IPPs that stated that they had already settled fuel and operation and maintenance (O&M) cost recoveries.
The IPPs requested the government to stop all inquiries against the electricity producing companies.
However, the IPPs’ representative made it clear that the companies would offer these concessions only if government withdraws all legal cases against them.
The representative also noted that the IPPs had challenged all the NERPA notices in Islamabad High Court, arguing, “Our request is tied to the closure of all cases filed against us.”
Furthermore, another IPP’s representative remarked that the government end its proceedings against the company.
The Central Power Purchasing Agency (CPPA) has informed NEPRA about its plans to share the details with the government regarding relief for consumers.
It also noted that both parties would withdraw their legal cases from courts if NEPRA approves the agreement.
It was also revealed that government’s renegotiations with the IPPs over the past few months had saved the country Rs950 billion.
Read more: Find out if you fit the criteria for reduction in electricity bills
