While the government is keen to slash substantial profits from all power projects to provide relief to consumers due to idle capacity charges, Pakistan Atomic Energy Commission (PAEC) is yet to agree to this.
On the other hand, WAPDA and government-owned generation companies (Gencos) have expressed interest in cutting return on equity to 10%. The Cabinet Committee on Energy (CCOE) chaired by the planning and development minister on Monday, looked over the implementation of its decisions such as the reduction in profit ratios.
Last month, the CCOE had ordered the Power Division to reduce the return on equity for the Gencos by 10% and measure it in rupee terms instead of the dollar. The CCOE was told that the Power Division took WAPDA, PAEC, and Gencos on board with PAEC proposing that the plan to reduce the return on equity be taken at higher levels, the Strategic Plans Division oversees its affairs.
Pakistan aims to boost its nuclear-based power generation to 8,800MW and at present around Karachi Nuclear Power Plants capable of generating 2,200 MW are being considered with the financial aid of China. The CCOE has also ordered that power projects under WAPDA and PAEC are to present their cash flow statements with an inquiry committee recommending that the government in a bid cut costs, renegotiate terms of power projects.
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