Power plants rake in Rs10b monthly with zero power output: NEPRA data reveals shocking truth

Dr Gohar Ejaz cited NEPRA data showing Rs150 billion/month paid to IPPs operating below 10% capacity over three months


News Desk July 21, 2024

The former caretaker minister for Commerce and Industries Dr Gohar Ejaz, while referring to National Electric Power Regulatory Authority (NEPRA) data has stated that at least four power plants which are receiving Rs10 billion per month are running without supplying any 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 and highlighted 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 on X.

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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