SC summons details of IPPs outstanding dues

ISLAMABAD - The Supreme Court on Wednesday sought details from government pertaining to accounts payable to Independent Power Producers so far.The bench also directed the AGP to consult the government how much amount would be paid to ease the financial burden of IPPs so that power companies could be run on full capacity for national grid. Appearing before a three-judge bench of Justice Tassaduq Hussain Jillani on the court notice, the Attorney General for Pakistan told that government is devising strategy to pay outstanding amount of Rs 38 billion to IPPs. He said that only Rs 38 billion were payable to the power companies instead of claimed amount of Rs 62 billion.One of the counsels for the petitioners, Hamid Khan, submitted that non-payment of dues Rs 62 billion by the government to the power companies has adversely affected fuel supply to the IPPs., adding that it would lead to serious electricity shortage in the country which would also cause adverse effects on the national economy.Munir A Malik, counsel for another petitioner, said although his client is well aware about the financial constraint of the government yet due to non-payment of dues to the IPPs, the power companies were also facing financial hardship which, he termed, is becoming major hurdle in generating electricity.Malik further argued that a formula was finalised between government and IPPs in September 2011 for payments which implementation was stopped in January 2012. "At least the formula implementation must be resumed", Malik prayed.Earlier, Fakharuddin G Ibrahim, while representing one of the IPPs has submitted that as of February 2012, the Dependable Energy Capacity in Pakistan was 17504 MW of which 8300 MW is attributable to the IPPs. He has also informed the court that actually 3866 MW were produced between the period of Mrach 2011 to February 2012 adding that the reason for under-utilisation of capacity by IPPs was, inter alia, attributable to the birth of circular debt on account of non-payment of dues by the government.Directing the AGP to submit details pertaining to outstanding dues to the IPPs from the government, the bench adjourned hearing of the case till July 13.

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