Ten Independent Power Producers (IPPs) created under the Generation Policy 2002 have strongly objected to the government’s treatment of private sector power generators and have presented Prime Minister Shehbaz Sharif with a list of demands to stop their sovereign contracts. This action is being taken in response to growing annoyance over allegations that capacity payments to IPPs have rendered customer tariffs unaffordable.
The IPPs—Pakgen Power, Nishat Power, Nishat Chunian, Sapphire, Hubco Narowal, Kohinoor Energy, Liberty FSD, Halmore, Laraib, and Orient Power—pointed to ongoing talks preceding negotiations to change their Power Purchase Agreements (PPAs) from a “take or pay” to a “take and pay” model in a joint letter to the Prime Minister.
