LAHORE: The Islamabad High Court has suspended notices issued to four Independent Power Producers (IPPs) by National Electric Power Regulatory Authority (Nepra) on alleged excessive profits.

The IPPs challenged the notices pleading that they were established under the Policy for Power Generation Projects, 2002, after executing an implementation agreement with the government and Power Purchase Agreement with National Transmission and Despatch Company (NTDC).

They said under the provision of both agreements, IPPs were issued sovereign guarantees, assuring their demands of capacity prices based on tariffs determined by Nepra under its Act of 1997. They said since the government defaulted in paying the IPPs’ capacity demands, the sovereign guarantees were invoked and arbitration proceedings were initiated.

According to them, the notices issued by Nepra were not covered under the provisions of its act or any substantive law but was an illegal and adverse tactic to renegotiate tariffs which had already been finalised.

They asked the court to set aside the impugned notices for being unlawful. However, the court suspended the impugned notices till the next date of hearing.

Nepra had issued notices to M/s Liberty Power Tech Ltd, M/s Atlas Power Ltd, M/s Attock Gen Ltd and M/s Nishat Power Ltd.

Published in Dawn, April 3rd, 2019