Four IPPs ‘earning’ Rs10b monthly with zero power output, reveals ex-minster

  • Dr Gohar Ejaz cites NEPRA data showing Rs150b monthly paid to IPPs operating below 10% capacity over three months
  • Says substantial amount of ‘halal income’ being funnelled to just 40 families in name of capacity charges

ISLAMABAD: Former caretaker minister for Commerce and Industries Dr Gohar Ejaz, citing National Electric Power Regulatory Authority’s (NEPRA) data, on Sunday claimed that at least four power plants were receiving Rs10 billion per month without supplying a ‘single unit’ of electricity at all.

In a post shared on X (formerly Twitter) on Sunday, Dr Gohar Ejaz referenced NEPRA’s data from January to March this year, highlighting how a significant portion of the country’s energy budget is being misallocated.

During this period, NEPRA made monthly capacity payments amounting to Rs150 billion to various Independent Power Producers (IPPs).

According to the former minister, half of these IPPs operate at less than 10% capacity, meaning they barely produce any electricity.

“Four power plants are receiving Rs10 billion per month each with zero power supply,” he stated in X post.

Dr Ejaz criticized this payment system as unfair, noting that a substantial amount of money, which he referred to as “halal income,” is being funnelled to just 40 families under the guise of capacity charges.

 

He maintained that these charges are meant to ensure plants are ready to produce electricity if needed, but in this case, they appear to be grossly mismanaged.

“This money, our halal income, is being given to 40 families under the guise of capacity charges,” he added, criticizing the misuse of public funds.

He argued that these power plants should be converted into merchant plants, meaning they would only be paid for the electricity they produce and deliver.

Additionally, Dr Ejaz suggested that Pakistan should buy electricity from the cheapest available suppliers to ensure cost-efficiency.

“The government should not do business at the expense of the people of Pakistan,” he urged, calling for an end to this exploitation.

Dr Ejaz also called on NEPRA to include representation from all large consumers in its management and distribution processes to ensure fair treatment and oversight.

“This exploitation must end,” he concluded.

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