Three independent power producers (IPPs) in Pakistan have refused to reduce their tariffs to 5 cents/kWh as requested by the government. Tapel Energy, Gul Ahmed Energy and Japan Power Generation told a meeting headed by the Water and Power secretary that they were unable to meet the desired rate.

The three companies are among nine IPPs cleared by the government of corruption. Two others, Davis Energen and Altren Energy agreed to meet the goverment tariff for ten years. The government has lowered the furnace oil price following a request from the IPPs.

Habibullah Coastal, an IPP with a 123 MWe plant near Quetta, offered to reduce tariffs to 4.8 cents/kWh, provided its gas allocation is increased from 20 years to 30 years and its capacity production to 75 per cent. In 1994, it was offered a tariff of 6.5 cents/kWh at a production capacity of 60 per cent.