CCOE decides to close 4 loss-making power plants

ISLAMABAD    -  The Cabinet Committee on Energy (CCOE) on Thursday decided to close four loss-making power plants of state owned Gencos of low efficiency with an approximately 1500MW power generation capacity.

The committee which met under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar also decided to phase-wise close all inefficient Gencos by 2022, official sources told The Nation. 

The thermal power plants which were decided to be closed down included  generation plants of Jamshoro Power Company Limited (JPCL), plants at Northern Power Generation Company Limited (NPGCL), Central Power Generation Company Limited (CPGCL) and Lakhra Power Generation Company Limited (LPGCL). It is worth to mention here that the CCOE in 2019 had directed the ministry of energy to close state-owned power generation companies running into losses.

Meanwhile a press release issued here said that CCOE considered a proposal of Power Division related to shutting down of low efficiency power plants. The committee after detailed deliberations approved the proposal for closure of inefficient plants in a phased manner. The committee directed Power Division to work out exact dates for closure of these power plants. 

Cabinet Committee on Energy also considered a proposal of Power Division for waiver of minimum 66% Take-or-Pay commitment in PPAs and GSAs of three RLNG plants. The proposal is a part of government efforts to produce electricity through the most economical sources and reducing reliance on relatively expensive ones. 

The committee directed Power Division as well as Finance Division to carry out further deliberations to ensure that both electricity and gas sectors are able to meet their demand & supply requirements without any disruption. 

The meeting was attended by Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, SAPM on Petroleum Nadeem Babar and senior officials of various divisions.