Federal Minister for Energy Hammad Azhar has said that the federal government and K-Electric have agreed in principle to resolve most of their long-standing disputes regarding additional supply, payment procedures and subsidy disbursements.
In a tweet on Sunday, the energy minister expressed the confidence that both the sides will now be swiftly moving towards signing a new agreement. “I am glad to report that the Federal Govt & KE have today agreed upon principles to resolve most of their long standing disputes regarding additional supply, payment procedures & subsidy disbursements. We will be swiftly moving towards signing a new PPA InshAllah,” tweeted the minister.
Earlier on May 05, the Economic Coordination Committee (ECC) of the federal cabinet gave the approval to pay the first instalment of Rs89 billion to 35 independent power producers (IPPs) out of a total of 47.
The ECC, which met with Finance Minister Shaukat Tarin in the chair, approved Rs89 billion for 35 IPPs, whereas payment to the remaining 12 IPPs may be withheld owing to investigations being carried out by the National Accountability Bureau (NAB).
The federal government previously rejected an impression of default with IPPs over agreed payments to them as sources claimed that the delay was made after the NAB is taking its time to give a nod to it.
According to sources within the government, the hue and cry raised by some of the independent power producers (IPPs) were aimed at pressuring the government and creating an impression of default. The officials who wished not to be named said that the payment would be cleared as soon as the NAB authorities give clearance on the payment summary.
