The Ministry of Water and Power has directed Pakistan Electric Power Company (PEPCO) to take steps for immediate payment of outstanding dues to four Independent Power Producers (IPPs) who have served show-cause notices to PEPCO due to the non clearance of Rs16.2 billion in dues for electricity supplied.
An official source said that PEPCO had been directed to expedite its recovery campaign from defaulters and ensure that the recovered amount was swiftly transferred to those IPPs which had served notices. He said that the matter would be amicably resolved with IPPs. PEPCO has an outstanding payment of Rs148 billion to IPPs.
The notices were served by four IPPs, from 225 MW Atlas Power demanding due of Rs3.5 billion, 200 MW Liberty Power Tech demanding Rs3.7 billion, 200 MW Nishat Chunian Rs4.5 billion and 200 MW Nishat Power Rs4.5 billion. The notices were received by the Private Power and Infrastructure Board (PPIB) against the National Transmission and Despatch Company (NTDC) that was responsible for the delay in payment. Since the government of Pakistan was the sovereign guarantor, they have invoked that guarantee.
Regarding the termination of show cause notices by four gas based IPPs, the Petroleum Ministry was requested to extend the supply gas agreement for another year while the IPPs were also called on to look into possibilities of other fuels to run the power plants.
If the gas supply was not extended for another year availability of 842 MW of electricity would be at stake after June30. This is because four gas powered IPP’s in Punjab have served termination notices to the government claiming their investment costs along with the profits for five years. The four IPPs include 229 MW Saif Power Project, 229 MW Sapphire Electric Power Project, 229 MW Orient Power Project and 225 MW Halmore Power Project.