Islamabad: Federal Minister for Energy Awais Leghari has stated that the Independent Power Producers (IPP) contracts will not be altered under any circumstances.
Speaking on a private TV program, Minister Leghari emphasized that the IPP contracts cannot be unilaterally terminated, as this would result in a penalty of $900 million similar to the Reko Diq case.
He mentioned that steps are being taken to reduce electricity prices and that negotiations regarding capacity payments with IPPs are possible. If the dollar had remained at the 2015 rate, capacity payments would have been $800 billion instead of $2100 billion.
The Energy Minister also highlighted that during his visit to China, discussions were held regarding the reprofiling of Chinese loans for the power sector.
Awais Leghari further noted that shifting Chinese power plants to local coal could result in a reduction of 2.5 rupees per unit. He assured that any benefits from loan reprofiling would be passed on to consumers, and the Jamshoro Power Plant is being transitioned to local coal by the government itself.
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