ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari has clarified that the government never planned to tax solar energy and has no such plans for the future. He hinted that electricity prices might decrease further, and during Ramadan, power will be supplied to areas with electricity theft during Sehri and Iftar times.
A meeting of the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, was held. Special Assistant to the Prime Minister on Energy, Muhammad Ali, briefed the committee. He shared that negotiations with Independent Power Producers (IPPs) are ongoing, and agreements with six power plants have been terminated. Power plants operating under the 2002 policy will now be paid in local currency instead of dollars, and their profit margins have been reduced.
Muhammad Ali also mentioned that talks are ongoing with federal and provincial governments to lower power plant rates. Forty-five wind and solar power plants are being shifted to a “take and pay” model. Additionally, payments to gas and furnace oil power plants have been adjusted, and steps are being taken to address circular debt. Efforts are underway to waive interest on circular debt, and the government will repay loans to banks at fixed rates.
The Special Assistant revealed that some terminated power plant contracts had 5 to 10 years remaining. Changes to IPP agreements are being made through mutual consultation. He also disclosed that the government had requested Rs. 20 million from the previous administration for a forensic audit, which was not provided. The options were either to conduct a forensic audit or resolve issues through negotiations. IPPs refusing to negotiate will face a forensic audit.
Muhammad Ali stated that the government waived Rs. 300 billion in late payment surcharges in the power sector and recovered Rs. 35 billion in excess payments from IPPs. He highlighted that while NAB recovers 25% in plea bargains, the government achieved 100% recovery and waived 100% late payment surcharges.
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Federal Minister for Power Awais Leghari emphasized that IPP agreements were not forcibly changed but were revised through mutual consultation and consent. He noted that past issues with IPPs have been resolved effectively.
He also announced that during Ramadan, electricity will be provided to areas with power theft during Sehri and Iftar, and instructions in this regard will be issued today.
