FPCCI urges govt to review, restructure IPPs contracts
Business
Reduce reliance on costly IPPs
LAHORE (APP) - Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former vice president Chaudhry Zahid Iqbal Arain has called upon the government to review and restructure the Independent Power Producers (IPPs) contracts to align their payments more closely with actual electricity production and demand.
Speaking at a roundtable conference on ‘Impact of high power tariffs and huge payments to IPPs on economy' here on Sunday, he said revisiting and renegotiating these capacity payment agreements with the IPPs could provide a solution to the problem of high power tariff, which was a major impediment to economic growth.
He added that even for domestic consumers, the high electricity tariffs exacerbate financial hardships, leading to widespread dissatisfaction and social unrest.
Ch Zahid said that implementing more efficient energy policies, promoting renewable energy sources, and investing in energy infrastructure can help reduce reliance on costly IPPs.
Addressing this issue is crucial for fostering a business-friendly environment, ensuring affordable electricity for all, and promoting sustainable economic development, he added.
The senior leader of United Business Group said capacity charges had led to excessive financial burdens on the country that not only strains public finances but also inflates the cost of electricity, making it difficult for people and businesses to afford.
