The government was in the process of reviewing independent power producers (IPP) contracts, Energy Minister Awais Leghari said on Friday as consumers ration their electricity use to avoid high utility bills.
“A task force is thoroughly examining all aspects of these agreements and the NEPRA chairman has refused to add any further capacity as the demand is already low while capacity is excessive,” he told the Senate Standing Committee on Energy.
Senator Mohsin Aziz presided over the meeting held at the Parliament House. Leghari mentioned that the government was also reviewing the Diamer-Bhasha Dam project and emphasized that the IPP contracts were “being scrutinised with great attention.” He warned that such contracts cannot be handled lightly; tampering with them could lead to a situation similar to the Reko Diq case.
At one point, Leghari said that the government was accountable to Parliament and not to any private company. He clarified that the regulator operates under the cabinet, not the ministry.
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Senator Shibli Faraz criticised the “intentional neglect” of hydropower projects, stating that those supporting furnace oil projects have jeopardised national security.
The NEPRA chairman stated that the country was already facing low demand and excess capacity, making it impossible to add further capacity at this time. He indicated that if new projects were included in the upcoming IGCEP, tariffs would be established.
