The government has filed a review petition in the Supreme Court, seeking permission to operate rental power plants (RPPs) as independent power plants and utilise the RPPs’ infrastructure to overcome the electricity crisis.
“Yes, we have filed a review petition in the Supreme Court, requesting it to allow the government to use RPPs’ infrastructure,” a spokesman for the Ministry of Water and Power said.
The National Electric Power Regulatory Authority (Nepra) would be asked to determine power tariff for these plants, he said.
On March 29 this year, the Supreme Court cancelled the agreements of RPPs and directed the National Accountability Bureau (NAB) to probe charges of corruption against some ministers and bureaucrats. Another official of the water and power ministry pointed out that the government had struck a deal over power tariff with the RPPs for three to five years.
“However, if the Supreme Court permits, Nepra will determine power tariff for these plants for 10 years on a cost-based formula,” he said. In this mechanism, the power tariff would not be more than that of existing IPPs, he added.
“However, no advance payment will be made. It will not be a bad deal as the country needs more electricity,” the official stressed.
Earlier, there was much hue and cry over the RPPs because of extremely high power tariffs and advance payments made to them.
The ministry official claimed that some RPPs were efficient than the IPPs and power generating companies of Wapda as they would comparatively consume less fuel.
The government claims that it has added 3,394 megawatts of electricity to the national grid since coming to power in March 2008, with the RPPs contributing 400MW. This 400MW can still be produced, but the plants are not running due to cancellation of their contracts following the Supreme Court’s decision.
“If the apex court grants permission to use infrastructure of the RPPs, the government will be able to produce 329MW through these plants, which will operate as IPPs,” the ministry official said.
Earlier, NAB had asked the Supreme Court to allow the government to re-negotiate with the RPPs for better utilisation of their machinery. But the court turned down the request.
Separately, Turkish-based power firm Karkey Karadeniz Elektrik Uretim, which was running a ship-mounted rental power plant before the cancellation of deal, has sent a legal notice to the government of Pakistan. It has not accepted the decision of the Supreme Court and has moved to the international court of arbitration. “The government wants the Turkish firm to refrain from approaching the international court and running RPPs as IPPs will help end the dispute with the company,” the official said.
Published in The Express Tribune, July 10th, 2012.
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all these units will go for arbitration. You cannot just shut them down. That is bad for business.
GOP will find any way they can to milk this cow called RPPs. Let all the RPPs who were really crooks, including our Islamic brother the Turk, should go to court and explain why they were not producing power as per contract and who were the people in GOP or elsewhere that were venture capitalists in the RPPs. I like to see these ripp-off artists come and explain what is what. I bet they never will.