Lahore: The cancellation and revision of Independent Power Producers (IPP) contracts
has resulted in a significant saving of PKR 3600 billion for the government.
According to sources from the Ministry of Energy, despite considerable pressure, several IPP contracts were canceled. These costly agreements, made 20 years ago, required the government to pay capacity charges even when electricity was being generated, which would have cost the public PKR 3.6 trillion annually.
The revision and cancellation of these contracts have not only reduced electricity tariffs but also saved the government from paying excessive surcharges.
The industrial community has demanded that action be taken against the 40 IPP involved, as they held the country hostage through expensive electricity deals, even though some power plants remain non-operational.
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