After lengthy discussions with the authorities, Prime Minister Shehbaz Sharif announced on Thursday that five independent power producers (IPPs) had “voluntarily” decided to terminate their power purchase agreements with the federal government. This will provide consumers who are struggling with inflation an annual relief of Rs60 billion.
These five IPPs put the interests of the country ahead of their own by freely deciding to end their contracts with the government. The prime minister told the Cabinet, “For them, the take-and-pay model is no longer in place.
The inclusion of capacity payment charges to power bills made them unaffordable for the masses struggling with inflation, and this led to widespread protest across the nation, forcing the federal government to reevaluate its power purchase agreements (PPAs) with industry players.
