New payment model for IPPs without ‘profit bonanza’

• Govt wants to cut capacity costs, hold power producers accountable for ‘excess profiteering’
• ‘Unhappy’ companies blame heavy taxes for costly electricity tariffs
• Independent generators say ‘forced’ renegotiations will damage investors’ confidence

A NEW financial model proposed by the government to 18 independent power producers (IPPs) will significantly reduce their capacity payments and also recover “excess profits” made by these companies in the past, senior managers of three IPPs and a government official told Dawn.