October 12, 2018 (MLN): The Hub Power Company Limited has issued clarification regarding an article published by a news agency on October 10th 2018, in a notification issued on Friday 12th October.
The article comments on the suspension of power generation of five IPPs including Hubco’s 1200MW (net) thermal power plant at Hub, Baluchistan (Plant).
As mentioned in the article, Hub Plant ran out of fuel on September 4, 2018 because of circular debt, which is known industry-wide issue.
The Company is of the view that the suspension of its Plant does not significantly impact its financial position.
The Company has informed the Power Purchaser and Government of Pakistan that the shutdown of the Hub Plant is a direct result and consequence of the default of CPPA (G) in payment of the overdue amounts owed to the Company.
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