Staff Report
ISLAMABAD: MQM-Pakistan’s leader Mustafa Kamal has demanded of government to cancel the capacity charges agreement with local independent power producers (IPPs).
Mustafa Kamal was talking with media here after visiting the National Electric Power Regulatory Authority (NEPRA) office.
He said the situation has reached to the extreme where a brother kills another over the electricity bill payment.
“I plead to the prime minister that 70 percent IPPs have been locally owned. Talk to them over the mistaken policy. You have earned thousands of billions and now we could not pay more,” MQM leader said.
He said, remaining 30 percent IPPs belong to our friend countries, ” the prime minister should talk to them over the one-point agenda to seek the solution”.
Mustafa Kamal said he has talked with the NEPRA to fix the K-Electric tariff. The regulator must bound the company, not to close a feeder over non-payment, he said. “The shutdown of a feeder over non-payment suspends power supply to every consumer,” he said.
He said the power supply system in Pakistan could not be corrected until more than one companies operating in the field. “There are more than one companies across the world and until the monopoly will not end, a common consumer could not get relief,” he said.
The NEPRA has informed that the framework has been prepared and the law passed to grant license to more than one companies in market. NEPRA has said that the issue will be resolved by October with more than one companies in the field.
On the other hand, The All Pakistan Textile Mills Association (APTMA) has demanded review of the IPPs agreements and forensic audit of the independent power producers (IPPs).
Chairman APTMA Asif Inam has said that the expensive electricity has made it difficult to export. “We have pointed out the line of action,” he said.
He demanded of the government to initiate forensic audit of the independent power producers (IPPs). He also urged for a hurried review of the contracts with the IPPs.
He said capacity charges and expensive power have negative impacts over the exports from Pakistan.
He pointed out that the private sector’s IPPs owners are Pakistani citizens.
The All Pakistan Textile Mills Association (APTMA) is an association of textile industry representing hundreds of textile mills in the country.
It is pertinent to mention here that textile is Pakistan’s largest industry and the most important export from the country.
Earlier, MQM leader Mustafa Kamal has termed independent power plants (IPPs) as threat to the national security.
Mustafa Kamal in a statement demanded immediate removal of the capacity payments clause from the IPP agreements. “We are paying billions of rupees for the electricity, which is not being generated,” MQM leader said.
He said the amount allocated for capacity payments has been more than the defence budget.
“These agreements were signed in various governments, but we don’t want to talk over it, we want a solution of the problem,” Mustafa Kamal said.
He said Pakistan and these agreements could not go side by side. “We don’t want to do politics by threatening to quit the government,” he added.
MQM leader said the national economy and development have dropped down. “People could not buy electricity on 60 rupees per unit price,” he said. “These contracts required to be reviewed,” he said.
He asked the prime minister to discuss the matter with China,” inform them, we have committed mistake, Pakistan could not bear the burden of these agreements,” he added.
