ISLAMABAD: A meeting of the Cabinet Committee on Energy (CCoE) has approved the proposal of the Power Division to shut down inefficient plants in a phase-wise manner. The CCoE met with Federal Minister for Planning, Development and Special Initiatives Asad Umar in the chair, here on Thursday.

The committee considered a proposal of the Power Division related to shutting down of low-efficiency power plants. After detailed deliberations, the committee approved the proposal for closure of inefficient plants in a phase-wise manner.

The committee also directed the Power Division to work out the exact dates for closures of those power plants. The committee also asked the Power Division to bring a proposal relating to the human resource of these entities on humane, fair and just basis.

The CCoE also considered a proposal of the Power Division for waiver of minimum 66 percent Take-or-Pay commitment in the Power Purchase Agreements (PPAs) and Gas Supply Agreements (GSAs) of three Regasified Liquefied Natural Gas (RLNG) plants.

The proposal is a part of the government's efforts to produce electricity through the most economical sources, and reducing reliance on relatively expensive ones.

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

Copyright Business Recorder, 2020