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Receivables of eight IPPs reach Rs56bn

The receivables of eight independent power producers (IPPs) from government against electricity supply climbed to Rs56 billion as of December 3, said officials.

The eight IPPs, which under 2002 policy have to purchase fuel on advance payment, submitted a writ petition before the Supreme Court after the government failed to honour its sovereign guarantees in July, they said.

These IPPs included Nishat Power Limited, Halmore Power, Sapphire Power, Liberty Power, Orient Power, Atlas Power, Saif Power and Nishat Chunian Power Limited.

The outstanding amount has increased to Rs56 billion because the National Transmission and Dispatch Company (NTDC) is only paying around 59 percent of the existing bills of these IPPs, while Rs19 billion of Rs21 billion is yet to be paid, said officials.

On the directives of the apex court, the government has promised to pay Rs24 billion in three equal monthly installments and Rs21 billion in nine equal monthly installments, after the buyer and supplier agreed on the outstanding amount of Rs45 billion.

The Supreme Court also instructed the National Transmission and Dispatch Company on August 15 to make the existing billing of the petitioner independent power producers up to-date in accordance with the power purchase agreement so that the outstanding amount might not pile up again and the IPPs could produce the electricity regularly to reduce outages.

An executive of one of the affected IPPs said that despite the Supreme Court orders, the existing dues of these IPPs are still not being fully cleared.

The National Transmission and Dispatch Company still owed Rs37 billion to the eight IPPs for the power supplied after July 13.

These IPPs are still generating power and supplying it to National Transmission and Dispatch Company.

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