The government has started ending contracts with Independent Power Producers (IPPs) to help save consumers Rs60 billion each year and reduce electricity prices. This decision was made during a federal cabinet meeting led by Prime Minister Shehbaz Sharif. The aim is to benefit both the public and the national treasury, with total expected savings of Rs411 billion.
The government will first terminate contracts with five IPPs: HUBCO, Lalpir, Saba Power, Rousch Power, and Atlas Power. Importantly, these companies will not receive any extra payments for outstanding dues, meaning they will not be compensated for their remaining contracts.
Prime Minister Shehbaz Sharif praised these IPPs for willingly choosing to end their contracts for the benefit of the public. He also announced plans for more reforms in the energy sector to keep lowering electricity tariffs in the future.
This move is part of a broader effort to improve the country’s energy situation and make electricity more affordable for everyone. The government believes that by reducing the financial burden of these contracts, it can create a more sustainable and cost-effective energy market for the people.
The post ‘Five IPPs Agree to Cancel Power Agreements, Rs 60 Billion Relief for Consumers, PM Shehbaz appeared first on Startup Pakistan.
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