ISLAMABAD: The government has refused to pay capacity charges to rental power plants (RPPs) that have been cleared by National Accountability Bureau (NAB) for running a revised policy, as per sources.
Under a power purchase agreement with short-term independent power plants (IPPs), formerly called RPPs, the government will not pay capacity charges and also not make upfront and mobilisation advance payments to the power producer.
Fuel will be arranged by the power producer and the agreement will be strictly on take-and-pay basis. Tariff will be determined by the National Electric Power Regulatory Authority (Nepra) according to the policy.
The Economic Coordination Committee (ECC) approved the power purchase agreement with the short-term IPPs in a meeting held on June 17.
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