Minister says negotiations with IPPs held in transparent manners
Business
Attends session with world development partners on power sector reforms
ISLAMABAD (APP) – Federal Minister for Energy Sardar Awais Ahmed Khan Leghari on Monday said all negotiations with IPPs are being held in a free fair and transparent manner with right to walk away from these negotiations or resort to arbitration or opt for forensic audit as per the terms of their agreements.
Federal Minister for Energy Sardar Awais Ahmed Khan Leghari attended a detailed session with Power Sector International Development Partners on power sector reforms and its way forward.
The development partners were led by Country Director World Bank, Najy Benhassine and included representatives from IMF, ADB, IFC, KFW, German Embassy, FCOD, UNDP and AIIB, said a press release.
The minister apprised the participants about the reforms that the power division has undertaken to bring in efficiency and discipline with targets to bring the electricity prices to more competitive and affordable for all consumers in general and industry in particular.
He while underscoring the importance of efforts to rationalize tariff of electricity for the economy of the country, assured the participants that all negotiations with IPPs are being held in a free fair and transparent manner with right to walk away from these negotiations or resort to arbitration or opt for forensic audit as per the terms of their agreements.
He said that the government is taking all steps to engage all its development partners and in this regard has adopted an inclusive approach in policy formulation and execution process.
He said that due to sheer maintenance of transparency the government has been able to cut around 7000 MW from IGCEP from a total committed 17000 MW thus saving a huge amount of money in terms of expensive power.
Awais Leghari informed the participants about various reforms undertaken by the Power Division which includes transition from Take or Pay to Take and Pay, elimination of furnace oil based plants, conversion of imported coal to local coal.
He said that Extensive and detailed study of power generation is being made which reveals that we have not adopted least cost policy in past but now it will be least cost.
He also apprised about that Removal of Transmission constraints by construction of Matriari Moro RYK lines , Ghazi Barotha FSD lines , Reactive Power Compensation Devices , Battery Storage system.
He further informed about the process of splitting of NTDC in Energy Infrastructure and Development company and National Grid Company, Provision of electricity to SEZs by developing regulatory and contractual framework, SLAs with industries with Captive Generation, installing AMI and APMS Assets protection management system on 100 percent feeders.
About Elimination of circular debt, the minister informed that the government wanted to give clear visibility to finish it in next five to eight years. Elimination of electricity duties, rationalization of subsidies is yet another step toward rationalization of electricity tariff.
