Saif Power Company has urged National Transmission and Despatch Company (NTDC) to pay an overdue amount of Rs 2.198 billion along with interest and Late Payment Surcharge (LPS) immediately, well informed sources told Business Recorder. National Power Regulatory Authority (Nepra) has recently sought a detailed reply from the Central Power Purchasing Agency (CPPA)/ National Power Control Centre (NPCC) for purchasing expensive electricity from HSD-fired four IPPs ie Saif Power, Orient Power, Saphire and Halmore Power and ignoring cheap gas and furnace oil-fired power plants.
Saif Power Limited in a letter to the NTDC has conveyed that the former is constrained to deliver upon power purchaser the demand for payment as contemplated in the agreement of September 08, 2007 in favour of the company issued by the President of Pakistan for and on behalf of the Islamic Republic of Pakistan. Capitalized terms used and otherwise shall have the meanings given to them in the Power Purchase Agreement (PPA) of April 30, 2007 between the Power Purchaser and the company.
"As you are aware, section 9.6( payment) of the PPA stipulates that the power purchaser must pay the company the undisputed amount shown on an invoice delivered section 9.5(billing) of the PPA on or before the 10th day following the day the invoice is received by the power purchaser- the due date. However, the power purchaser has failed to make payments of invoices amounting to Rs 2.198 billion. Consequently, a payment default of the power purchaser has occurred and is continuing," the sources quoted Saif Power as saying.
Saif Power has called upon the power purchaser to make payment to the company of the overdue Rs 2.198 billion along with interest and Late Payment Surcharge (LPS). Nine IPPs have already sought international arbitration for recovery of Rs 11 billion from NTDC in accordance with the judgement passed by Justice Sair Ali (retired). However, NTDC is resisting the move of the IPPs.
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