Details of MoU between govt, IPPs revealed

Both sides reached an understanding on reduction in the rate of late payment surcharge.

ISLAMABAD (Dunya News) – Independent Power Producers (IPPs), in the larger national interest, have voluntarily agreed to provide concessions, according to a document available with Dunya News.

According to details, IPPs have agreed for extension of debt term by five years resulting in benefit of billions of rupees for consumers by significant reduction in power tariff.

It was also agreed that for local investors, the ROE will be changed in rupee terms without dollar indexation.

It has also been proposed to allow wind power plants to install solar plants. Both sides have also reached an understanding on reduction in the rate of late payment surcharge from 4.5 percent to 2 percent.