President of Employers Federation of Pakistan (EFP), Ismail Sattar, has termed the recent breakdown in negotiations between Private Power Infrastructure Board (PPIB) and Independent Power Producers (IPPs), on the pretext of harsh and unjustified conditions, deceptive and misleading.
In an official statement, EFP President said that PPIB has colluded with the IPPs and is actually pushing the latter to accept the “take and pay” option.
While PPIB might have rejected the rumors of having inside links with IPPs by declaring the news as mala fide, the information that PPIB had offered IPPs to accept the take and pay option was actually leaked by inside sources of PPIB.
The letter added that promoting the vested interests of IPPs is tantamount to abusing tax money of the public.
Currently, more than 60% of Pakistan’s electricity is generated through fuel-fired power plants that have burdened the country’s oil import bill considerably in the recent past. During the last 5 years, 10,000 MWs of electricity was added to the national grid but it wasn’t utilized effectively. As a result, the government was forced to pay exorbitant additional capacity payment charges to the IPPs.
In the face of declining foreign exchange reserves, the government is bound to pay IPPs in dollars which is suicidal and will jeopardize national security in the long run.
If institutions like PPIB, NEPRA, etc. are unable to uncover the money-making tactics employed by the IPPs despite having a dilapidated transmission structure then National Coordination Committee (NCC) ought to revise the roles of these institutions, the letter concluded.