Former Minister Gohar Ejaz Tells Govt to Release All Data on Payments to IPPs

Ex-federal minister Dr. Gohar Ejaz demanded Energy Minister Awais Leghari to make public the detailed data on all 106 independent power producers (IPPs), including their production, fuel costs, capacity payments, and per-unit costs. “Dear Minister, Your Majesty; Comments that I am unaware of the Facts and Not Informed is a “True Fact “. Which I am sharing with The Nation, that I was Unaware till I Recently went into details of the Energy Agreements of these IPP and All Reports by the committees. We are All Unaware of How we are being Robbed because of Mismanagement and Corruption in the name of Investors’ Confidence being shattered,” the former minister said apparently in response to current energy minister Awais Leghari. He pointed out that the “Take or Pay” contracts for 23,400 MW of IPP capacity need urgent review, cancellation, or renegotiation. He argued that consumers should only pay for the electricity supplied to the national grid. He said 52 percent of these IPPs are government-owned but produce less than 50 percent of their installed capacity, yet consumers are charged 100 percent capacity payments. The remaining 48 percent are owned by “40 Families”, operating at 50 percent capacity but charging consumers an average of Rs. 24 per unit, totaling Rs. 2.112 trillion in capacity payments. “Dear Minister I am sure you are a Competent Minister and fully informed so please] share with the Public All 106 IPP Data. How many units produced by each of them last year against their Rated capacity, Cost of Fuel paid to them, and per unit cost of units produced? Amount of Capacity payment to each of them and cost of per unit of capacity payment from each IPP. The total cost per unit produced by each of these IPPs is charged to consumers. You are a Politician and Elected representative Serving as Federal Minister,” he argued. He added, “We want to be aware and we want to know what we are being charged as consumers. We are also aware now that we have to save Pakistan from these IPPs which are holding back [the] Growth and Development of Pakistan as [the] Actual Electricity cost should be less than Rs. 30 per unit which should be charged to consumers not Rs. 60 per unit which is being Billed”.