IPPs refused to generate full electricity in summer amid higher circular dept

Economy in Pakistan

ISLAMABAD – The Pakistan Muslim League-Nawaz (PML-N) led federal government might be making claims to have reduced the electricity but Independent Power Producers (IPPs) warned of at least 12 to 14 hours loadshedding in coming months.

According to the sources privy to National Transmission and Dispatch Company (NTDC), the advisory council of IPPs maintained the stance in a recent meeting.

IPPs warned that amid high amount of outstanding dues, they would not be able to generate power at full capacity in summer.

The source told PakistanTribe that the customer receivables of Distribution Companies (DISCOs) have reached Rs 500 billion. This has resulted in Rs 300 billion re-accumulating as circular debt because NTDC is unable to pay for the full amount for the electricity it is purchasing from the power generators.

The IPPs, representatives said that the payments were insufficient to keep the plants fully operational and as a result the receivables have grown again.

About the author

Hissan Khan

Hissan Khan is currently working as the Editorial Head of Pakistan Tribe's Islamabad Office. Having work as current affairs host, news analyst and C4D expert, Hissan holds a good command over communication and development strategies.

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