ISLAMABAD: Despite constant pressure mounting from the ongoing Jamaat-e-Islami (JI) talks in the capital over exorbitant electricity bills, Federal Minister for Power Awais Leghari on Monday ruled out any possibility of reviewing agreements with independent power producers (IPPs).
In an interview with a private news channel, Federal Energy Minister Awais Leghari said the government will not under any circumstances review the agreements with IPPs.
He said the government cannot pay a $900 million fine like Reco Diq by unilaterally canceling contracts.
“The government is taking steps to reduce customs rates. Government can negotiate capacity payments with IPPs. Had the dollar not appreciated, the capacity payments would have been 800 billion instead of 2100 billion rupees,” he claimed.
The federal minister said that the re-profiling of debt payments in the power sector was discussed at length with the Chinese authorities during the recent visit of the finance minister to China.
The minister said the cost of electricity could be reduced by Rs 2.5 per unit by using local fuel instead of imported fuel in power generation.
