LAHORE, June 8: The government has failed to implement the Economic Coordination Committee (ECC) decision to release outstanding dues of over Rs18 billion to independent power producers (IPPs).

The ECC had on May 15 decided to release the said amount to the IPPs, which had threatened to move the court for the recovery of their dues after the government committed sovereign default on their dues amounting to Rs34 billion.

Sources in IPPs said on Friday that the ministries of water and power and finance had failed to implement the ECC decision to resolve the delayed payments on which the government has already committed a sovereign default.

They blamed the delay in payments for excessive power cuts across the country. Due to non-payment the plants were producing electricity half their capacity of the required 1700 megawatts, IPP sources claimed.