LAHORE: An annual report of Independent Power Procedures (IPPs) payments revealed that five major powerhouses were given tax-free payments.
According to the report, Hub Power was paid Rs 260 billion at 16 percent capacity by the government, Engro was given Rs 74 billion at 54 percent capacity while Lucky Group was paid Rs 62 billion at 28 percent capacity.
Similarly, Sapphire was given Rs 34 billion at 34 percent capacity, Mian Mansha’s powerhouses operated at 13 percent capacity and were paid Rs 25.6 billion.
The sources said these companies are paid annually under agreements and the audit department is responsible for the rest.
The Ministry of Energy sources maintained that if there is any irregularity, strict action will be taken.
Earlier, former Caretaker Minister Gohar Ejaz said that the government is paying two trillion rupees to IPPs, which are generating 30 percent of their capacity.
Addressing a press conference, he said that 70 percent payment being taken without generating electricity. “The Independent Power Producers should be paid as much amount according to their power generation,” Gohar Ejaz said.
“We have only one demand, pay as much amount to an IPP as it produces power,” he said.
“We have prepared a petition and going to the Supreme Court,” former minister said. “Everything will clear with forensic audit of the IPPs,” he said.
“It is not the government’s job to do business,” he stressed.
Earlier, The Government of Pakistan has estimated capacity payments to IPPs amounting to Rs 2,091 billion for the current fiscal year.
According to official documents, the highest capacity payments are estimated for nuclear plants at Rs 465.7 billion.
The capacity payments for hydropower plants are estimated at Rs 446.4 billion, while imported coal power plants are expected to require Rs 395.4 billion.
The Thar coal power plants are estimated to need Rs 256 billion in capacity payments, and LNG power plants are projected at Rs 168 billion.
Wind power plants are estimated to require Rs 168 billion in capacity payments, and furnace oil power plants are projected at Rs 81.33 billion.
For gas power plants, the capacity payments are estimated at Rs 61.21 billion, while solar power plants are projected at Rs 41.63 billion.
Finally, the capacity payments for bagasse-based (sugarcane residue) power plants are estimated at Rs 6.9 billion.
Read more: IPPs getting billions of rupees without producing electricity in Pakistan
Capacity payment refers to the payment made monthly by consumers to the power-producing company to maintain its capacity to generate electricity, ensuring that additional demand can be met. Notably, these capacity payments to IPPs are made in US dollars, not Pakistani rupees.
Former caretaker commerce minister Gohar Ejaz has been raising awareness through his statements and social media posts about the government’s mistakes and how these mistakes, if not corrected, will deteriorate the country’s economic conditions further. –Agencies
