Featured New agreement with IPPs will bring down power generation cost, says PM

[Morpheus]

New agreement with IPPs will bring down power generation cost, says PM
Fahad Zulfikar Updated 14 Aug 2020


(Karachi) Prime Minister Imran Khan has said that the government inked a new agreement with Independent Power Producers (IPPs) which will help in bringing down cost of power generation and reduce circular debt.

I congratulate our nation on its 73 yrs of Independence. Our journey towards Quaid's Pakistan has begun: for Rule of Law with all citizens equal before the law; & towards an Islamic Welfare State, premised on compassion.

— Imran Khan (@ImranKhanPTI) August 14, 2020
In twitter messages on Independence Day on Friday, the prime minister said: "I congratulate nation bec we are fixing the damaging structure we inherited in our Power sector."

My message to our brave Kashmiri brethren is that our nation stands united with them in their just struggle for self determination. We will provide them with all the support at all levels as they valiantly fight India's illegal occupation.

— Imran Khan (@ImranKhanPTI) August 14, 2020
He added that the government's next move will be to bring reform in power distribution sector.

I congratulate nation bec we are fixing the damaging structure we inherited in our Power sector. After long negotiations we have signed new agreement with IPPs which will bring down cost of power generation & reduce circular debt. Next reform target is power distribution system.

— Imran Khan (@ImranKhanPTI) August 14, 2020
The PM maintained, "I congratulate our nation on its 73 yrs of Independence. Our journey towards Quaid's Pakistan has begun: for Rule of Law with all citizens equal before the law; & towards an Islamic Welfare State, premised on compassion."

This was my main message to our youth in our Dharna and it remains an invaluable lesson for our youth today. pic.twitter.com/jIQy5Lrare

— Imran Khan (@ImranKhanPTI) August 14, 2020
He mentioned the nation stands united with the people of Kashmir in their struggle for freedom. "My message to our brave Kashmiri brethren is that our nation stands united with them in their just struggle for self determination. We will provide them with all the support at all levels as they valiantly fight India's illegal occupation," Imran stated.

The prime minister also shared poetry of late poet Allama Iqbal saying, "This was my main message to our youth in our Dharna and it remains an invaluable lesson for our youth today."

https://www.brecorder.com/news/4001...will-bring-down-power-generation-cost-says-pm
---------------------

 

[Kabira]

Details of agreement?

 

[fitpOsitive]

Details of agreement?

O ni Jay milnian.

 

[Dil_Pakistan]

Very good news.
Btw key here is "power generation cost". Expect fake news & bias media and perhaps some nadan's in govt present this as reduction in electricity costs or bills which i don't think is such a good idea and likely will not happen either unless all the IPPs operating make new agreements which is currently not the case.. it should be ensured that this goes in controlling the white elephant that is circular debt.

 

[Shahzaz ud din]

PMKI,s Historic deal with IPPs.
Though this deal only relates to IPPs launched during Musharraf era and later, it is a huge step. The IPPs licensed by the PPP govt in the 90s are in the final years of their contracts anyway...so renegotiating with them doesnt make sense.

ISLAMABAD: In a crucial development, a government team and two groups of independent power producers (IPPs) and wind power projects (WPPs) reportedly reached an understanding on reduction in the rate of return on equity and late payment surcharge (LPS) and sharing of savings on account of plant efficiencies on Thursday.


[URL='https://twitter.com/ImranKhanPTI']@ImranKhanPTI[/URL]
I congratulate the nation on successfully tackling COVID19 by protecting our poor through cash support & smart lockdowns & by being able to reduce our overall cases.


I congratulate the nation at upturn in our economy after 2 yrs of struggle. Current Account & Fiscal deficits are down; construction industry & thru it job creation taking off bec of our special incentives; stock market up; exports & revenues up & cement & car sales up;
A senior government official told Dawn that about half of the 12 IPPs set up under the 2002 power policy and an association representing about two dozen WPPs had already signed memorandums of understanding (MoUs) with a negotiation team led by former federal secretary Babar Yaqoob Fateh Muhammad while others are expected to follow suit within 15 days.

These do not include the IPPs under 1994 policy, China-Pakistan Economic Corridor, public sector plants of generation companies, hydropower and nuclear power projects which claim over 75 per cent of the capacity payments.

Since most of the IPPs remained unutilised for almost nine months last year and are on the last leg of their terms, the total savings would amount to about 5pc of the total energy purchases that last year stood at about Rs775 billion or about Rs35-40bn, the official explained.

The understanding followed principles from government side that power purchase agreements are sacrosanct, the IPPs would not be subjected to media trial and there would be no investigations or arm twisting. However, evidence was put on the table to suggest that on a case to case basis, investments had been exaggerated, equity overstated and machinery over-invoiced and taxes underpaid and hence mutually agreed changes in existing contractual relationship.

For foreign investors registered with the State Bank of Pakistan, the return on equity (ROE) ‘will be 12pc prospectively’. For local investors, the ROE will be changed to 17pc in rupee terms without dollar indexation. “In recalculating the return, the equity approved by the National Electric and Power Regulatory Authority (Nepra) on commercial operation date in dollar shall be converted into rupee at an exchange rate of Rs145 for prospective calculation”, according to an MoU seen by Dawn.

The two sides have also agreed that any saving in fuel for oil-based projects would be shared on a sliding scale starting from 70:30 in favor the government for the first 0.5pc efficiency improvement above currently determined benchmark by Nepra, followed by 60:40 for next 0.5pc, followed by 50:50 for next 0.5pc, and finally 40:60 for any efficiency above that. The government will not share efficiency losses.

Likewise, any savings in operations and maintenance (O&M) in case of these plants would be shared 50:50 after accounting for any reserves for major overhauling. If the reserve for major overhaul remains unutilised, it will be shared in the ratio of 50:50 by the IPP and the government, which will not share losses in O&M and major overhaul.

For gas projects, the fuel and O&M will be taken as one consolidated line and any net savings will be shared 60:40 by the government and IPP, after accounting for any reserves for major overhaul. The unutilised reserve for overhaul would be shared on 60:40 by the government and IPP. Power purchaser will not share in fuel, O&M and major overhaul losses.

The two sides have also agreed for heat rate test by the government of the IPPs to ensure actual efficiency matched reported accounts.

Moreover, the LPS would be lowered both by the IPPs and WPPs from the current Kibor plus 4.5pc to Kibor plus 2pc but it will be ensured that payments follow the power purchase agreement (PPA) mandated first-in-first-out payment to make this rate effective. Compounding and interest on interest provided for in the PPA, etc. will be adjusted to match the settlement agreement initialed (but never put into effect) by the government and some of the IPPs in 2019.

On ‘miscalculation’ of internal rate of return (IRR) on account of periodicity of payments, no adjustment shall be made for the past as the regulator had expressly allowed this in its decisions. In future, Nepra shall calculate IRR on a monthly basis and shall consider on merit adjustments for costs denied in lieu thereof.

Also, all projects will convert their contracts to take and pay basis, when Competitive Trading Arrangement is implemented and becomes fully operational, as per the terms defined in the license of each IPP. Until then, the existing take or pay will continue.

In order to assess if a company has made any ‘excess profits’, the reconciled financials between the committee and the IPPs would submitted to Nepra to take a decision and provide for a mechanism for recoveries where applicable.

The payment of receivables of the IPPs have been made integral part of the settlement. The two sides will devise a mechanism for repayment of the outstanding receivables with an agreement on payment of receivables within the agreed time period which will be reflected in the final agreement to be signed.

The committee has committed that the National Transmission and Despatch Company/National Power Construction Corporation would not be allowed to curtail their power supply on the premise of transmission constraints and any such rejection or energy lost would be compensated and default interest invoice payment within a month.

The government agencies would open onshore dollar account to enable the WPPs to convert their earnings into dollars on monthly basis. Their agreement would also be extended to 25 years from 20.

In return, the WPPs would secure reduction in O&M fee and relief from lenders in extension of debt term by five years and some reduction in spread to be given to the government. The two sides have also agreed to reduce ROE by up to 3pc provided the ROE remains in dollar.

The government will assist the WPPs in relief in loans since some of the lenders were multilaterals or receptive to government goodwill.

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[HAIDER]

O ni Jay milnian.

remind me this .... lolzz ..awsome part 1 and part 2.
xxxx://www.youtube.com/watch?v=GoBz1Z0BlBE

 

[fitpOsitive]

remind me this .... lolzz ..awsome part 1 and part 2.
xxxx://www.youtube.com/watch?v=GoBz1Z0BlBE

Kafi arsy bad maan ki gali pothohari main suni... Acha laga

 

[ghazi52]

New deal signed with IPPs to cut cost of power generation: PM

Prime Minister Imran Khan said that the government has signed a new agreement with the independent power producers (IPPs) under which the cost of electricity generation would be brought down and circular debt would be reduced.

“I congratulate the nation because we are fixing the damaging structure we inherited in our power sector,” he said in a series of tweets.

The prime minister promised that he would soon introduce a package that would focus on improving the distribution system by tackling line losses and theft.

“Quaid-e-Azam wanted an Islamic welfare state and we are embarked on a journey towards that goal,” the PM remarked.

He also mentioned an upturn in the country’s economy after two years of struggle, highlighting that the current account and fiscal deficits were down.

Listing the policies that the government consider as a success, the prime minister said that the construction industry was taking off due to the special incentives offered by the government.

“The stock market, exports, revenue collection as well as cement and car sales were up,” the PM claimed

 

[[--Leo--]]

PMKI,s Historic deal with IPPs.
Though this deal only relates to IPPs launched during Musharraf era and later, it is a huge step. The IPPs licensed by the PPP govt in the 90s are in the final years of their contracts anyway...so renegotiating with them doesnt make sense.

ISLAMABAD: In a crucial development, a government team and two groups of independent power producers (IPPs) and wind power projects (WPPs) reportedly reached an understanding on reduction in the rate of return on equity and late payment surcharge (LPS) and sharing of savings on account of plant efficiencies on Thursday.


@ImranKhanPTI
I congratulate the nation on successfully tackling COVID19 by protecting our poor through cash support & smart lockdowns & by being able to reduce our overall cases.


I congratulate the nation at upturn in our economy after 2 yrs of struggle. Current Account & Fiscal deficits are down; construction industry & thru it job creation taking off bec of our special incentives; stock market up; exports & revenues up & cement & car sales up;
A senior government official told Dawn that about half of the 12 IPPs set up under the 2002 power policy and an association representing about two dozen WPPs had already signed memorandums of understanding (MoUs) with a negotiation team led by former federal secretary Babar Yaqoob Fateh Muhammad while others are expected to follow suit within 15 days.

These do not include the IPPs under 1994 policy, China-Pakistan Economic Corridor, public sector plants of generation companies, hydropower and nuclear power projects which claim over 75 per cent of the capacity payments.

Since most of the IPPs remained unutilised for almost nine months last year and are on the last leg of their terms, the total savings would amount to about 5pc of the total energy purchases that last year stood at about Rs775 billion or about Rs35-40bn, the official explained.

The understanding followed principles from government side that power purchase agreements are sacrosanct, the IPPs would not be subjected to media trial and there would be no investigations or arm twisting. However, evidence was put on the table to suggest that on a case to case basis, investments had been exaggerated, equity overstated and machinery over-invoiced and taxes underpaid and hence mutually agreed changes in existing contractual relationship.

For foreign investors registered with the State Bank of Pakistan, the return on equity (ROE) ‘will be 12pc prospectively’. For local investors, the ROE will be changed to 17pc in rupee terms without dollar indexation. “In recalculating the return, the equity approved by the National Electric and Power Regulatory Authority (Nepra) on commercial operation date in dollar shall be converted into rupee at an exchange rate of Rs145 for prospective calculation”, according to an MoU seen by Dawn.

The two sides have also agreed that any saving in fuel for oil-based projects would be shared on a sliding scale starting from 70:30 in favor the government for the first 0.5pc efficiency improvement above currently determined benchmark by Nepra, followed by 60:40 for next 0.5pc, followed by 50:50 for next 0.5pc, and finally 40:60 for any efficiency above that. The government will not share efficiency losses.

Likewise, any savings in operations and maintenance (O&M) in case of these plants would be shared 50:50 after accounting for any reserves for major overhauling. If the reserve for major overhaul remains unutilised, it will be shared in the ratio of 50:50 by the IPP and the government, which will not share losses in O&M and major overhaul.

For gas projects, the fuel and O&M will be taken as one consolidated line and any net savings will be shared 60:40 by the government and IPP, after accounting for any reserves for major overhaul. The unutilised reserve for overhaul would be shared on 60:40 by the government and IPP. Power purchaser will not share in fuel, O&M and major overhaul losses.

The two sides have also agreed for heat rate test by the government of the IPPs to ensure actual efficiency matched reported accounts.

Moreover, the LPS would be lowered both by the IPPs and WPPs from the current Kibor plus 4.5pc to Kibor plus 2pc but it will be ensured that payments follow the power purchase agreement (PPA) mandated first-in-first-out payment to make this rate effective. Compounding and interest on interest provided for in the PPA, etc. will be adjusted to match the settlement agreement initialed (but never put into effect) by the government and some of the IPPs in 2019.

On ‘miscalculation’ of internal rate of return (IRR) on account of periodicity of payments, no adjustment shall be made for the past as the regulator had expressly allowed this in its decisions. In future, Nepra shall calculate IRR on a monthly basis and shall consider on merit adjustments for costs denied in lieu thereof.

Also, all projects will convert their contracts to take and pay basis, when Competitive Trading Arrangement is implemented and becomes fully operational, as per the terms defined in the license of each IPP. Until then, the existing take or pay will continue.

In order to assess if a company has made any ‘excess profits’, the reconciled financials between the committee and the IPPs would submitted to Nepra to take a decision and provide for a mechanism for recoveries where applicable.

The payment of receivables of the IPPs have been made integral part of the settlement. The two sides will devise a mechanism for repayment of the outstanding receivables with an agreement on payment of receivables within the agreed time period which will be reflected in the final agreement to be signed.

The committee has committed that the National Transmission and Despatch Company/National Power Construction Corporation would not be allowed to curtail their power supply on the premise of transmission constraints and any such rejection or energy lost would be compensated and default interest invoice payment within a month.

The government agencies would open onshore dollar account to enable the WPPs to convert their earnings into dollars on monthly basis. Their agreement would also be extended to 25 years from 20.

In return, the WPPs would secure reduction in O&M fee and relief from lenders in extension of debt term by five years and some reduction in spread to be given to the government. The two sides have also agreed to reduce ROE by up to 3pc provided the ROE remains in dollar.

The government will assist the WPPs in relief in loans since some of the lenders were multilaterals or receptive to government goodwill.

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Can anyone tell me the sum up story how much cost has been reduce by units .
second what about wind power IPP's their per unit cost is so high which is not reasonable , thus this deal included them as well which power plants were install in last 8 - 10 years

 

[mourning sage]

If the govt can successfully renegotiate the contracts, it really will be a boost for the Pakistani manufacturing sector. Our exports can become a wee bit more competitive internationally, whilst providing a huge relief to local consumers. The past govts have committed a grave crime against the nation, of course, to keep their own coffers full and flowing with money, by purchasing the most expensive energy.

 

[ziaulislam]

PMKI,s Historic deal with IPPs.
Though this deal only relates to IPPs launched during Musharraf era and later, it is a huge step. The IPPs licensed by the PPP govt in the 90s are in the final years of their contracts anyway...so renegotiating with them doesnt make sense.

ISLAMABAD: In a crucial development, a government team and two groups of independent power producers (IPPs) and wind power projects (WPPs) reportedly reached an understanding on reduction in the rate of return on equity and late payment surcharge (LPS) and sharing of savings on account of plant efficiencies on Thursday.


@ImranKhanPTI
I congratulate the nation on successfully tackling COVID19 by protecting our poor through cash support & smart lockdowns & by being able to reduce our overall cases.


I congratulate the nation at upturn in our economy after 2 yrs of struggle. Current Account & Fiscal deficits are down; construction industry & thru it job creation taking off bec of our special incentives; stock market up; exports & revenues up & cement & car sales up;
A senior government official told Dawn that about half of the 12 IPPs set up under the 2002 power policy and an association representing about two dozen WPPs had already signed memorandums of understanding (MoUs) with a negotiation team led by former federal secretary Babar Yaqoob Fateh Muhammad while others are expected to follow suit within 15 days.

These do not include the IPPs under 1994 policy, China-Pakistan Economic Corridor, public sector plants of generation companies, hydropower and nuclear power projects which claim over 75 per cent of the capacity payments.

Since most of the IPPs remained unutilised for almost nine months last year and are on the last leg of their terms, the total savings would amount to about 5pc of the total energy purchases that last year stood at about Rs775 billion or about Rs35-40bn, the official explained.

The understanding followed principles from government side that power purchase agreements are sacrosanct, the IPPs would not be subjected to media trial and there would be no investigations or arm twisting. However, evidence was put on the table to suggest that on a case to case basis, investments had been exaggerated, equity overstated and machinery over-invoiced and taxes underpaid and hence mutually agreed changes in existing contractual relationship.

For foreign investors registered with the State Bank of Pakistan, the return on equity (ROE) ‘will be 12pc prospectively’. For local investors, the ROE will be changed to 17pc in rupee terms without dollar indexation. “In recalculating the return, the equity approved by the National Electric and Power Regulatory Authority (Nepra) on commercial operation date in dollar shall be converted into rupee at an exchange rate of Rs145 for prospective calculation”, according to an MoU seen by Dawn.

The two sides have also agreed that any saving in fuel for oil-based projects would be shared on a sliding scale starting from 70:30 in favor the government for the first 0.5pc efficiency improvement above currently determined benchmark by Nepra, followed by 60:40 for next 0.5pc, followed by 50:50 for next 0.5pc, and finally 40:60 for any efficiency above that. The government will not share efficiency losses.

Likewise, any savings in operations and maintenance (O&M) in case of these plants would be shared 50:50 after accounting for any reserves for major overhauling. If the reserve for major overhaul remains unutilised, it will be shared in the ratio of 50:50 by the IPP and the government, which will not share losses in O&M and major overhaul.

For gas projects, the fuel and O&M will be taken as one consolidated line and any net savings will be shared 60:40 by the government and IPP, after accounting for any reserves for major overhaul. The unutilised reserve for overhaul would be shared on 60:40 by the government and IPP. Power purchaser will not share in fuel, O&M and major overhaul losses.

The two sides have also agreed for heat rate test by the government of the IPPs to ensure actual efficiency matched reported accounts.

Moreover, the LPS would be lowered both by the IPPs and WPPs from the current Kibor plus 4.5pc to Kibor plus 2pc but it will be ensured that payments follow the power purchase agreement (PPA) mandated first-in-first-out payment to make this rate effective. Compounding and interest on interest provided for in the PPA, etc. will be adjusted to match the settlement agreement initialed (but never put into effect) by the government and some of the IPPs in 2019.

On ‘miscalculation’ of internal rate of return (IRR) on account of periodicity of payments, no adjustment shall be made for the past as the regulator had expressly allowed this in its decisions. In future, Nepra shall calculate IRR on a monthly basis and shall consider on merit adjustments for costs denied in lieu thereof.

Also, all projects will convert their contracts to take and pay basis, when Competitive Trading Arrangement is implemented and becomes fully operational, as per the terms defined in the license of each IPP. Until then, the existing take or pay will continue.

In order to assess if a company has made any ‘excess profits’, the reconciled financials between the committee and the IPPs would submitted to Nepra to take a decision and provide for a mechanism for recoveries where applicable.

The payment of receivables of the IPPs have been made integral part of the settlement. The two sides will devise a mechanism for repayment of the outstanding receivables with an agreement on payment of receivables within the agreed time period which will be reflected in the final agreement to be signed.

The committee has committed that the National Transmission and Despatch Company/National Power Construction Corporation would not be allowed to curtail their power supply on the premise of transmission constraints and any such rejection or energy lost would be compensated and default interest invoice payment within a month.

The government agencies would open onshore dollar account to enable the WPPs to convert their earnings into dollars on monthly basis. Their agreement would also be extended to 25 years from 20.

In return, the WPPs would secure reduction in O&M fee and relief from lenders in extension of debt term by five years and some reduction in spread to be given to the government. The two sides have also agreed to reduce ROE by up to 3pc provided the ROE remains in dollar.

The government will assist the WPPs in relief in loans since some of the lenders were multilaterals or receptive to government goodwill.

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finally something..
next IK needs to focus on distribution..that is key bottle neck..
renewable especially solar through clear competitive bidding..
and imporving both oil and gas supply lines and new refineries

still of lot of work needs to be done to fix the energy issues..

 

[insight-out]

The details are yet to be announced, but this is a major breakthrough.

Anyone who says that this government has accomplished nothing in two years is simply being disingenuous.

 

[lastofthepatriots]

The details are yet to be announced, but this is a major breakthrough.

Anyone who says that this government has accomplished nothing in two years is simply being disingenuous.

We’ll talk when my bill is less. I’m already at 1300 units with 2 AC’s running. WAPDA are thugs and should be hung from street lamps.

 

[Morpheus]

New deal signed with IPPs to cut cost of power generation: PM
PM says he will soon introduce a package that will tackle the issues of line losses & theft, and focus on improving the distribution system

By
News Desk
-
August 14, 2020
1
2490

ISLAMABAD: Prime Minister Imran Khan said on Friday that the government has signed a new agreement with the independent power producers (IPPs) under which the cost of electricity generation would be brought down and circular debt would be reduced.

“I congratulate the nation because we are fixing the damaging structure we inherited in our power sector,” he said in a series of tweets.

The prime minister promised that he would soon introduce a package that would focus on improving the distribution system by tackling line losses and theft.

I congratulate nation bec we are fixing the damaging structure we inherited in our Power sector. After long negotiations we have signed new agreement with IPPs which will bring down cost of power generation & reduce circular debt. Next reform target is power distribution system.

— Imran Khan (@ImranKhanPTI) August 14, 2020

“Quaid-e-Azam wanted an Islamic welfare state and we are embarked on a journey towards that goal,” the PM remarked.

He also mentioned an upturn in the country’s economy after two years of struggle, highlighting that the current account and fiscal deficits were down.

Listing the policies that the government consider as a success, the prime minister said that the construction industry was taking off due to the special incentives offered by the government.

“The stock market, exports, revenue collection as well as cement and car sales were up,” the PM claimed.

He also congratulated the nation on successfully tackling coronavirus, highlighting the government’s efforts for the protection of the poor through cash support and smart lockdowns.

However, the PM warned that the challenges were still there as the virus had not been eliminated completely. He urged the people to follow the standard operating procedures (SOPs) to further curb the spread.

DETAILS OF MOU


Meanwhile, sources confirmed this scribe that the government and IPPs on Thursday had finally reached an understanding on reduction in the rate of return on equity and late payment surcharge (LPS), and sharing of savings on account of plant efficiencies. A memorandum of understanding (MoU) containing 13 points has been signed between the two parties.

“The IPPs which were set up under the 2002 Power Policy have now agreed to alter their existing contractual agreements and to ink new power purchase agreements,” an insider said.

Once NEPRA, federal cabinet and IPPs’ Board of Directors approve this MoU, the documents and procedures of these understandings would be completed preferably within 30 days, after which the same will be submitted to NEPRA and Central Power Purchasing Agency (CPPA) to be followed by legal documentation to reflect the amendments needed in the relevant agreements.

Sources said this MoU is valid for six months and it will stand terminated on the signing of the detailed agreement.

According to the MoU, the two parties have, in the larger national interest, voluntarily agreed to provide concessions considering the fact that a significant period has been passed since its Commercial Operation Date (CoD). It was agreed that all projects will convert their contracts to take-and-pay basis and until then, the existing take-or-pay will continue.

The return on equity (ROE) including Return on Equity During Construction (RoEDC) for local investor will be changed to 17pc per annum in rupee terms without dollar indexation, while for foreign investors registered with the State Bank of Pakistan, ROE will be 12pc per annum on NEPRA approved equity at CoD.

Similarly, any saving in fuel for oil-fired projects would be shared on a sliding scale starting from 70:30 in favour of the power purchaser for the first 0.5pc efficiency improvement while any future savings in O&M of oil-fired projects will be shared 50:50 after accounting for any reserve for major overhauling which would be by power purchaser or NEPRA as mutually agreed and the power purchaser will not share in any efficiency losses.

Likewise, for gas projects, fuel and O&M will be taken as one consolidated line and any net savings will be shared 60:40 by the government and IPP for gas projects after accounting for any reserves for major overhaul. However, power purchasers will not share fuel, O&M and major overhaul losses.

In order to ensure that the actual efficiency is matching the efficiency reported in the financial statements, the power purchaser will appoint a reputable international independent consultant to perform a one-time detailed heat arte test for all IPPs.

For all future invoices, Delayed Payment Rate (DPR) under the PPA will be reduced to KIBOR+ 2pc for the first days after the due days and thereafter at KIBOR+ 4.5pc as per the PPA.

Moreover, NEPRA would take a decision if a company has made any excess profits and it (NEPRA) will hear and decide this matter and it will also provide a mechanism for recoveries where applicable.

Also, both the power purchaser and government will devise a mechanism for repayment of the outstanding receivables with agreement on payment of receivables within the agreed time period which will be reflected in the final agreement to be signed.

https://profit.pakistantoday.com.pk...with-ipps-to-cut-cost-of-power-generation-pm/
---------------

 

[Pakstallion]

15-16 minute seemingly unbiased explanation of this decision with historical explanation. Basically an excellent first step.