Breakthrough in Government-IPPs Talks: Flexibility Offered

Discussions between the government and Independent Power Producers (IPPs) are currently underway, and it seems like progress is being made. The five companies formed under the Power Purchase Agreement have agreed to be flexible, which is a positive step forward .

Key Developments:

• No New Payments: No new payments will be made to the five IPPs, and instead, the government is considering a formula to pay off the arrears without interest .
• Ongoing Talks: Negotiations are ongoing to finalize the matters with the five IPPs.
• Competitive Inter-Trade Market: 17 IPPs will be allowed to continue selling power under the competitive inter-trade market.
• Settlement Offers: The government has already offered campaigns to settle the cases as soon as possible.
• Formula for Non-Compliant IPPs: A formula is being worked out for IPPs that refuse to settle cases willingly.

It’s also worth noting that the government has proposed a new model to cut electricity tariffs, with 24 conditions set for transitioning from the existing capacity-based model to a take-and-pay arrangement with IPPs . This proposal aims to lower electricity tariffs for consumers.

Overall, it seems like the government is taking steps to improve the efficiency and sustainability of the country’s energy sector, while also working to reduce electricity costs for consumers.