Minister for Information and Broadcasting Shibli Faraz along with Special Assistant on Power Shahzad Qasim while addressing a press conference revealed that the government is renegotiating contracts with Independent Power Producers (IPPs) in a bid to ensure provision of cheap electricity to the masses.
The minister said that Expensive power contracts had been signed in the past which could not be done unilaterally. Expensive electricity was the main concern of Prime Minister Imran Khan and he wanted to address the issue on an immediate basis.
Under the new agreements being signed with the IPPs, payments would only be made for the electricity acquired and consumed instead of the total installed capacity of a particular power plant. After the new contracts come into effect the equity return will now be made in PKR rather than the US dollar, as was the past practice.
Similarly all the late payment interest would now be reduced from 4.5 percent to two percent.
