Business
Pakistanis Pay Rs. 150 Billion Monthly in Capacity Charges to IPPs
Pakistanis pay a staggering Rs. 150 billion monthly in capacity charges to Independent Power Producers (IPPs), despite many plants operating below 10% capacity.
Former Commerce Minister Dr. Gohar Ejaz revealed shocking data from NEPRA, urging the government to reclassify IPPs as merchant plants, paying only for electricity produced, not capacity.
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According to Ejaz, four power plants receive Rs. 1000 crores monthly each, with zero power supply.
He criticized corrupt IPP agreements, resulting in over-invoicing and substantial payments without electricity production.
The government is buying electricity at exorbitant rates, up to Rs. 750 per unit, while wind and solar energy cost below Rs. 50 per unit.
Ejaz proposed eliminating capacity payments, advocating for payments only for electricity purchased from the cheapest suppliers.
He emphasized that 80% of IPPs are Pakistani-owned, and the public must rise against these exploitative agreements to save the country.
The data revealed that a total of Rs. 150 billion was paid to IPPs in Q1 2024, with some plants receiving massive payments despite low capacity utilization.
The government is under pressure to review IPP contracts and ensure transparency in the energy sector.
The public is demanding an end to these “corrupt” agreements, which they claim are causing electricity prices to skyrocket.
