The federal government has approved the formation of a task force to address the issue of capacity payments to Independent Power Producers (IPPs) and implement power sector reforms. The task force will be chaired by Federal Minister for Power Awais Leghari, with newly appointed Special Assistant Muhammad Ali serving as the co-chairman. The sources said Lieutenant General Muhammad Zafar Iqbal will act as the National Coordinator, while members from the National Electric Power Regulatory Authority (NEPRA), Central Power Purchasing Agency (CPPA-G), Private Power and Infrastructure Board (PPIB), and Securities & Exchange Commission of Pakistan (SECP) will also be included in the task force. The task force is expected to present its recommendations to Prime Minister Shehbaz Sharif within a month regarding the reduction of capacity payments to IPPs. Additionally, the task force will prepare recommendations on other IPP-related issues and provide suggestions to ensure the financial sustainability of the power sector.

NEPRA was established under Section 3 of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997, to exclusively regulate the provision of electric power services in Pakistan. CPPA-G is a company incorporated under the Companies Ordinance, 1984, and wholly owned by the Government of Pakistan. PPIB was created in 1994 to promote private investments in the power sector. The role of PPIB has been further expanded by the GoP by allowing it to facilitate public sector power and related infrastructure projects in IPP mode, for which PPIB’s Act was amended in November 2015. SECP deals with the regulation of the corporate sector and the capital market. Supervision and regulation of insurance companies. Supervised and regulated non-banking finance companies and private pension schemes.

Credit: Independent News Pakistan