“IPP owners warned to update PPAs or risk penalties.”

Details indicate that owners of one independent power producer (IPP) created under the 2002 policy and four others established under the 1994 policy have been warned of the repercussions if they do not terminate the power purchase agreements (PPAs) willingly.

The owners of IPPs have been requested by the task group to stop paying capacity costs and just bill for power that is provided to the government.

According to the sources, forensic audit has also been threatened against the owners of Independent Power Producers should they decide to stick with the current PPAs.

On September 22, earlier, shocking revelations were made by government sources on the detrimental impact that many of the nation’s IPPs have had on the economy.

According to government sources, certain Independent Power Producers obtained billions of rupees through fraudulent contracts, even though they failed to produce any electricity. “The Government of Pakistan is bearing the heavy weight of IPP’s incorrect contracts.”

According to sources, the IPPs erected wind power plants with comparable capacity at a four-times higher cost than those in Vietnam and Bangladesh.

“In these contracts, the Independent Power Producer also overcharged,” according to official sources.