Rousch Power approves early termination of power purchase agreement with Pakistani govt

Rousch (Pakistan) Power Limited (RPPL) has approved the early termination of several key agreements, including the Power Purchase Agreement (PPA) with the Central Power Purchasing Agency (CPPA), the Implementation Agreement (IA) with the President of Pakistan on behalf of the government, and the government's guarantee.

These agreements were originally set to expire in 2032 but will now end on October 1 this year, a notice issued to stock exchange noted.

As part of the Negotiated Settlement Agreement, CPPA will pay the agreed receivables by December 31, and RPPL will hand over the complex to the government by the same date.

Last month, the government announced the termination of PPAs with five of the oldest independent power producers (IPPs), including Rousch.

This move is expected to save PKR 411 billion and reduce the average electricity tariff by around 71 paisas per unit.

The other IPPs include Saba, Lalpir, Atlas, and the Hub Power Company Ltd, which have a combined generation capacity of 2,463 MW and were set to expire within the next two to three years.