Former Caretaker Commerce Minister Dr. Gohar Ejaz has shared payment data for IPPs (Independent Power Producers) on X.
Dr. Ejaz stated that he is presenting data on payments, fuel costs, and capacity payments for each IPP over the past year.
He highlighted that the government’s payments to IPPs are causing difficulties for industrial, commercial, and domestic consumers.
He mentioned that the government is buying electricity from one power plant at the highest rate of 750 rupees per unit, while purchasing electricity from coal power plants at an average rate of 200 rupees per unit, and from wind and solar plants at rates above 50 rupees per unit.
Dr. Ejaz reported that payments amounting to 1.95 trillion rupees were made to IPPs with less than 20% capacity production.
The government has paid 140 billion rupees to one plant with a 15% load factor, 120 billion rupees to another plant with a 17% load factor, and 100 billion rupees to a third plant with a 22% load factor, totaling 370 billion rupees for just three power plants.
He explained that capacity payment agreements allow power plants to invoice excessively, resulting in substantial payments to IPPs without generating electricity.
He proposed that “no capacity payments” should be the solution to this issue.Dr. Ejaz suggested that agreements should be made only with providers of the cheapest electricity and that all IPPs should be treated as merchant plants, similar to other businesses.
He noted that power plants are 52% government-owned and 28% privately owned in Pakistan.
He further criticized the situation, stating that due to corrupt contracts, mismanagement, and incompetence, electricity is being sold at 60 rupees per unit.
He urged everyone to stand against these agreements made with 40 families to save the country.