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IPPs Offer Tariff Reduction, Waive ₹11 Billion in Surcharges if Legal Cases Are Dropped
7 IPPs propose up to 50-paisa/unit tariff reduction & waive ₹11B surcharges—only if legal cases are withdrawn. CPPA supports the move, NEPRA to decide.
ND
by News Desk
2025-03-25
IPPs Offer Tariff Reduction, Waive ₹11 Billion in Surcharges if Legal Cases Are Dropped

Seven independent power producers (IPPs) have proposed reducing electricity tariffs by up to 50 paisa per unit and waiving over Rs11 billion in late payment surcharges—on the condition that all ongoing investigations and legal proceedings against them are withdrawn.

The Central Power Purchasing Agency (CPPA) has supported the IPPs’ request and informed the National Electric Power Regulatory Authority (NEPRA) that any decision will require the regulator’s approval.

IPPs’ Conditional Offer

In a joint tariff review application submitted to NEPRA, the IPPs stated that since fuel and operation & maintenance (O&M) costs have already been determined, all pending investigations should be closed.

A representative of one IPP stressed:

“Our request is conditional on the withdrawal of all cases.”

Similarly, another company sought an end to the suo motu proceedings against them.

CPPA’s Support & Negotiations

The CPPA’s Managing Director revealed that during negotiations, the IPPs agreed to waive off Rs11 billion in late payment surcharges. Additionally, savings on fuel and O&M would be passed on to consumers for relief.

Key issues, including currency exchange rate adjustments, 'take and pay' mechanisms, and insurance caps, were also discussed during the NEPRA hearing, with agreements reached between CPPA and the IPPs.

According to CPPA officials:

  • Electricity tariffs could be reduced by up to 50 paisa per unit after NEPRA’s approval.
  • Negotiations with multiple IPPs have secured financial benefits worth Rs950 billion over the lifetime of the power plants.
  • So far, agreements have been signed with 29 IPPs voluntarily, while some have opted out.

NEPRA will now review the proposals and issue its decision regarding the tariff reduction and legal proceedings.
Tagged:

NEPRA

PakistanEnergy

ElectricityTariff

IPPs

PowerSector
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