Federal Minister Ovais Leghari Affirms No Contract Changes for IPPs

Quetta:In a recent statement reported by Karachi’s “Qudrat” newspaper, Federal Minister for Energy Ovais Leghari declared that Independent Power Producers (IPPs) would not be permitted to alter their agreements under any circumstances. During an interview, Leghari stressed that unilateral termination of IPP contracts could lead to penalties as substantial as $900 million, likening it to the Reko Diq case. He indicated ongoing efforts to lower electricity prices and expressed readiness to engage in discussions regarding capacity payments with IPPs. Leghari also noted discussions in China aimed at profiling power sector loans and potentially relocating Chinese power plants to local coal, which could reduce costs by up to Rs. 2.5 per unit. Regarding solar projects, Leghari mentioned existing solar net metering initiatives and proposed future projects would undergo price renegotiations if solar panel costs continued to decrease, ensuring full financial closure within 3 to 4 years.