Rousch (Pakistan) Power Limited (RPPL), a leading Independent Power Producer (IPP) in Pakistan, has successfully handed over its power complex to the designated government entity, National Power Parks Management Company Limited, after fulfilling all the agreed financial settlements with the Central Power Purchasing Agency (Guarantee) Limited (CPPA).
In recent years, Pakistan’s energy sector has faced mounting circular debt, inefficient power generation, and capacity payments to IPPs, leading to financial strain on national resources.
Termination of Long-Term Agreements
RPPL announced the completion of its obligations under the Negotiated Settlement Agreement (NSA), as confirmed in a notice to the Pakistan Stock Exchange (PSX) by its parent company, Altern Energy Limited (AEL). According to the notice, RPPL terminated the following agreements as part of the settlement:
- Power Purchase Agreement (PPA): Signed with CPPA for the provision of electricity.
- Implementation Agreement (IA): Executed with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan.
- Government Guarantee: Issued by the Government of Pakistan to ensure the implementation of contractual commitments.
Ministerial Insights on Savings and Reforms
Earlier, Minister for Power Division Sardar Awais Ahmad Khan Leghari highlighted the outcomes of successful negotiations with IPPs. He revealed that these efforts resulted in a substantial saving of Rs. 1.1 trillion for the national treasury.
The minister also announced plans to launch a competitive electricity market by March 2025, aiming to enhance transparency and allow market forces to determine electricity prices.
With its state-of-the-art facilities, the company contributed significantly to the national grid, ensuring a stable and reliable power supply for decades.
The completion of RPPL’s agreement termination and transfer marks the end of an era for one of the most prominent IPPs in Pakistan.
Key Milestones in RPPL’s Journey
- Transition Phase: RPPL’s decision to terminate its agreements aligns with the broader government-led initiatives to reform the energy sector.
- Operational Excellence: The company consistently met its power generation targets, contributing to energy stability during peak demand periods.
- Initial Setup: RPPL was established under Pakistan’s Power Policy, encouraging private sector participation in electricity generation.
Impact on Pakistan’s Energy Landscape
The transfer of RPPL’s complex to the government is a significant step towards achieving greater efficiency and cost-effectiveness in the power sector.
By consolidating assets under public management, the government aims to reduce redundancy, streamline operations, and improve energy affordability for consumers.
This transition will allow independent producers, distributors, and consumers to engage directly, fostering innovation and reducing reliance on fixed tariffs.
 Power Limited has officially handed over its power complex to the government entity, National Power Parks Company Limited.){kind=link}