POWER PURCHASE AGREEMENT(PPA)
The RPPL carries a Power Purchase Agreement (PPA), signed between RPPL and WAPDA, subsequently novated to the Central Power Purchasing Agency (CPPA).
This agreement and the rights and obligations of the parties to the PPA are being governed by and construed in accordance with the laws of England.
The RPPL executed an amendment in 2021, to provide support to the Government of Pakistan for lowering the electricity costs, and provided 11% reduction in its capacity payment and variable O&M. The RPPL also delinked 50% of its capacity payments from dollar based indexation (which otherwise was available under 1994 Energy Policy Framework of the GOP). This has provided relief to thepower purchaser in the event of devaluation of the local currency.