Govt disburses Rs142b to clear IPPs dues

ISLAMABAD: The Central Power Purchasing Authority (CPPA) has disbursed Rs142 billion to Independent Power Producers (IPPs) in line with International Monetary Fund (IMF)’s conditions for the energy sector reforms.

According to sources,  the energy sector circular debt increased by Rs394 billion during the last 11 months.

The total circular debt currently stands at a staggering Rs2.646 trillion.

Of the Rs394 billion increase in circular debt in the last 11 months, Rs249 billion are losses incurred by DISCOs while Rs171 billion is in the lieu of quarterly tariff adjustment and fuel price adjustment.

The DISCOs that received the payment include HUBCO, KAPCO, NPL, LPL and other registered companies.