Govt, IPPs start signing agreement for bringing down power tariffs

After extensive negotiations and discussions the IPPs and the Government have come to an agreement for bringing down power tariffs.

The IPPs which signed MoUs with the government in August have started signing the Master Agreement. To this effect, one solar IPP namely Harappa Solar Power Private Limited (HSL) having a capacity to generate 18MW electricity initiated the agreement with Central Power Purchasing Agency (CPPA).

The life of MoUs stands for six months which will expire on February 12, 2021. The government is currently in talks with IPPs for finalisation of the dues payment mechanism. The government is supposed to pay Rs452 billion to IPPs.

The share of Harappa Solar Power Private Limited out of the Rs452 billion dues to be paid, stands at Rs167 million. The officials are terming this development as a major breakthrough in revamping the power sector and reduction of power tariff.