Treasure Magazine

Treasure Magazine

Bagasse-based IPPs agree with Govt to cut power tariffs

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Signing of the amended purchase agreements will slash the existing tariffs to a considerable extent

ISLAMABAD: After solar-based independent power producers (IPPs), bagasse-based IPPs have also agreed to sign amended power purchase agreements with the government on reduced tariffs, a TV website reported on Sunday.

The signing of the amended purchase agreements will slash the existing tariffs to a considerable extent.

The bagasse-based IPPs have agreed to sign the amended power purchase agreements with a government team of officials negotiating with the IPPs over tariffs, sources said.

Eight bagasse-based IPPs will sign amended deal of power tariff with the government according to sources.

Sources said that both sides will sign the amended power purchase agreement after endorsement from the federal cabinet.

The new power agreement will also require approval from the governing boards of the bagasse-based IPPs, sources added.

The solar-based IPPs that had signed memorandums of understanding (MoUs) in August 2020 had recently reached to an agreement with the government negotiation team for signing amended agreement to slash power tariffs.

It is to be mentioned here that a negotiation team of the government is currently in talks with IPPs over their dues payment mechanism and signing the amended PPAs.