The Federal government has decided to terminate power purchase agreements with six more Independent Power Producers (IPPs), resulting in an estimated saving of Rs300 billion.

Sources indicate that the agreements will be canceled for a total capacity of 2,396 megawatts across the six IPPs. This includes the termination of an agreement with Gul Ahmed Energy for 136 megawatts.

Other affected IPPs include Kepco Power Projects (1,638 and 200 megawatts), Attock Power (165 and 131 megawatts), and Koh-i-Noor Energy (126 megawatts).

The government’s move is expected to lead to a reduction in electricity tariffs. This follows the earlier termination of agreements with 13 other IPPs, including eight private power plants using bagasse (sugarcane residue) as fuel.

The cumulative savings from these cancellations are substantial and represent a significant step in the government’s efforts to manage energy costs.