KARACHI: Former caretaker Commerce Minister Gohar Ejaz has disclosed data on payments to Independent Power Producers (IPPs), revealing significant financial burdens on consumers.

Ejaz shared that over past year, IPPs received payments amounting to Rs 1.95 trillion. He criticised corrupt contracts and mismanagement that result in electricity being sold at Rs 60 per unit, calling for public action against these deals.

He highlighted that government purchased electricity from one power plant at record Rs 750 per unit, and from coal power plants at an average of Rs 200 per unit, while wind and solar plants sold electricity at over Rs 50 per unit.

Ejaz pointed out that despite operating below 20 percent capacity, IPPs were paid substantial sums, including Rs 140 billion to one plant operating at 15 percent load factor and Rs 120 billion to another at 17 percent.

These agreements, according to him, allow IPPs to invoice heavily without generating equivalent power, stressing need for "No capacity payment" agreements. He urged government to only purchase from cheapest electricity providers and treat all IPPs as merchant plants.

Published in The Daily National Courier, July, 22 2024

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