ISLAMABAD – The Cabinet Committee on Energy (CCOE) has directed to finalise agreements with the IPPs with whom the MoUs have already been signed within the ongoing month.
A meeting of the Cabinet Committee on Energy (CCOE) was held under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar. CCOE directed to complete the negotiation process with the remaining IPPs as soon as possible, an official source told The Nation here Thursday.
The sources said that the CCOE has asked to sign agreements with those IPPs, registered under the power policies of 1994, 2002 and 2006, during the ongoing month. The CCOE has asked for the finalization of agreements with those IPPs with whom MoUs have already been signed, the source added. The CCOE also directed to pursue the remaining IPPs for signing the MoUs.
On August, 13, 2020, MoUs were signed by the federal government with 47 IPPs power generation plants installed under power policies 1994, 2002 and 2006. The MoUs are signed for six months and the government is required to sign the agreements with the IPPs within the agreed period otherwise the MoU will lapse. Five months have already lapsed and only one is remaining to sign the formal agreements.
Meanwhile, a press statement issued here said that the Power Division presented the design of Competitive Trading Bilateral Contract Market (CTBCM) for consideration and review of CCoE. The Division also apprised the committee of its implementation plan.
Power Division briefed the committee that in the first phase the consumers with a load of 1 MW or above will participate in the competitive market. These consumers represent around 16% of the total electricity sales. More consumers will be added in the market subsequently when the market stabilizes and matures. Committee gave approval of the design principles and implementation plan of the CTBCM.
Power Division also updated the committee on implementation of the circular debt reduction plan. The committee reviewed the implementation status and directed the power ministry to conclude the open items and submit formal proposals to the ECC for decision.
The meeting was attended by Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, Interior Minister Sheikh Rashid Ahmed, Advisor to Prime Minister on Finance Abdul Hafeez Sheikh, SAPM on Petroleum Nadeem Babar, Abdul Razak Dawood Adviser to the Prime Minister on Commerce & Investment and official of various divisions.