Islamabad. Agreements have been signed with the government power companies to procure cheap electricity. Under the power policy, payments to power plants will be in rupees. One dollar will be considered equal to one hundred and forty five rupees.

Most of the profits on fuel efficiency will be shared with the government. The savings in power plant costs will be shared with the government by 40%.

 According to the details of the MoU signed between the IPPs and the government, the government will pay the power generating companies in rupees instead of dollars. Costs for operation and maintenance of power plants will be reduced and late surcharge is being reduced by 2.5%.

It was also agreed with the power units initially imposed under the 2002 policy that the maximum value of the dollar would be Rs.145/- This will not increase the burden of payments on the government despite the devaluation of the rupee in the future.

In the new terms of the MoU, it was agreed that the government would conduct heat rate tests to test the capacity of power plants in which private power plants would co-operate fully with the government.

It was agreed by both the parties that the benefit of reduction in oil prices would be passed on directly to the consumers.