ISLAMABAD: The government’s investigative team probing the matter of independent power producers (IPPs) has called in owners of 13 companies following the discovery of “further profiteering” by power plants set up under the China-Pakistan Economic Corridor (CPEC).
As per media report, Special Assistant to the Prime Minister (SAPM) on Power Division Muhammad Ali is playing a key role in the investigation, and IPP owners have been instructed to present financial reports tomorrow.
Media Report says, This development follows the Senate’s Functional Committee on Devolution’s directive last month to the relevant ministry to conduct a forensic audit of the IPPs, with Chair Dr. Zarqa Suharwardy Taimur voicing concerns about the IPPs’ operations and the lack of transparency in their contracts.
The IPPs have been under scrutiny for some time now due to their alleged role in the exorbitant electricity bills, which have sparked a strong reaction from the inflation-weary public.
There have been calls to review the government’s existing agreements with the IPPs, with the most prominent demand coming from Jamaat-e-Islami (JI), which held a 14-day sit-in in Rawalpindi, calling for the renegotiation of contracts with the IPPs, among other demands.
The government has acknowledged that the country has the highest electricity tariffs in the region, with Energy Minister Awais Leghari stating that the nation will receive “good news” regarding the IPPs soon.
However, it is unlikely that there will be any unilateral changes to IPP contracts, as Leghari stated earlier this week that the government cannot unilaterally terminate agreements and warned that such a move could lead the country to face a “Reko Diq-like situation.”
Responding to questions at the Senate’s Standing Committee on Power, the minister—who also chairs a task force reviewing the IPP issue—argued against unilaterally ending these power purchase agreements with the IPPs, which are blamed for massive power tariffs, stating that the contracts have a sovereign guarantee cover.
Providing details on the ongoing probe into the IPP issue, sources said that key members of the investigation team have visited various plants to collect records and data.
With senior executives scheduled to gather in the federal capital after interrogations in various cities, the government aims to appeal to IPP owners, highlighting the country’s need for their support.
Furthermore, it has been decided to reduce the capacity payments and profits for government-owned power plants.
