Accountability for Catastrophic Energy Policies: The Case Against IPPs

Jailing those who promoted Independent Power Producers (IPPs) and dollar-pegged energy projects might seem like a straightforward solution to a complex problem, but it’s important to approach this issue with a nuanced perspective. The skyrocketing energy prices, mounting circular debt, and ever-increasing capacity payments are undoubtedly pressing concerns that weigh heavily on our economy. However, the root causes and potential solutions require a comprehensive analysis.

Historically it’s our fault for having signed such agreements

IPPs and dollar-pegged agreements were initially introduced to attract foreign investment and ensure energy security. At the time, these strategies seemed viable to meet the country’s growing energy demands and to counter chronic power shortages. The agreements were often structured with dollar indexation to mitigate the risk of local currency devaluation for foreign investors.