He clarified that the new net metering policy will apply to new installations rather than existing solar systems
DNA
ISLAMABAD: Federal Minister for Power Awais Ahmed Leghari has said the government is engaged in negotiations with Independent Power Producers (IPPs) to renegotiate terms.
Talking to media on Wednesday, he said the primary objective of these negotiations is to maintain the integrity of contracts while ensuring the best interests of Pakistan.
The Minister for Power said the revision of solar net metering policy is under consideration. He clarified that the new net metering policy will apply to new installations rather than existing solar systems. He said the government has consistently promoted renewable energy.
Earlier, The government claimed to have secured about Rs1.571 trillion in savings in future payments to a total of 27 independent power producers (IPPs) through negotiations so far, while another ‘unwilling’ producer would have to undergo a forensic audit.
This was the key takeaway from a presentation made by a power division team — comprising federal minister Awais Ahmad Khan Leghari, Special Assistant to Prime Minister Muhammad Ali and federal secretary Muhammad Fakhre Alam Irfan — before the Senate Standing Committee on Power, led by Senator Mohsin Aziz.
“The above savings will be passed on to the consumers through changes in agreements and tariffs over the contracting period,” read one of the slides presented to the Senate panel.
It explained that Rs411 billion in savings had been secured through the termination of contracts with five IPPs, Rs238bn through the revision of tariff contracts with eight bagasse-based IPPs, and Rs922bn in tariff revisions with 14 thermal IPPs.
The panel was informed that discussions were now in progress with 45 public sector power plants for more savings. Power Minister Leghari also assured the panel the government would neither discourage solar systems nor impose any tax.
SAPM Muhammad Ali said the government was paying Rs70-80bn to five IPPs whose contracts stood terminated, including Rs30bn to Hub Power Company alone. He dispelled the notion that IPPs were forced to revise contracts through pressure tactics. He said payables to the tune of about Rs300bn on account of late payment surcharge were being waived through the negotiation process, including Rs100bn already written off.
