Nepra Power Purchase Agreement
The report by Nepra, the electricity regulator, on the state of the sector for 2019, again focused on the real problems that are driving the energy sector down. The recent report on PPIs, which was leaked by the government, shifted the focus of the debate on issues facing the electricity sector to the validity of power purchase agreements with private producers and to “overpayments” to them at the expense of unfortunate consumers and the accumulation of massive circular debt. Indeed, it can be argued that the agreements concluded since 1994 with private heat producers could have been less generous to investors and more favourable to the government and consumers if they had been negotiated correctly. Nevertheless, it is misleading to blame PPIs for the chaos in the electricity sector. .