Govt warns IPPs of forensic audit

The government on Monday warned independent power producers (IPPs), including wind power plants, of a forensic audit if they refuse to renegotiate agreements. After negotiations with IPPs, the government terminated contracts with six private power plants, while others agreed to rupee-based returns and a hybrid take-and-pay basis, Special Assistant to the Prime Minister on Power Muhammad Ali informed a parliamentary panel. The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, met to review ongoing IPP negotiations, forensic audits, and the privatisation strategy for power distribution companies. Ali stated that the government previously paid between Rs70 billion and Rs80 billion annually to these power plants, with Hubco alone receiving Rs30 billion per year. The scrutiny of IPPs aims to reduce capacity payment burdens and improve sector efficiency.