Consumers struggling with soaring electricity bills have been presented with a significant revelation, as a report attributes the high cost of electricity largely to hefty payments made to Independent Power Producers (IPPs).
According to the report, nearly 70% of the amount charged per unit of electricity is allocated to payments for IPPs, placing a substantial financial burden on consumers through higher electricity bills.
Data shows that over the past five years, a total of Rs13.397 trillion has been paid to IPPs, of which Rs7.275 trillion was disbursed to private power plants for electricity generation.
The report further claims that a portion of the money collected from consumers was paid to certain IPPs even when they did not generate electricity. It also notes that capacity payments continued to increase despite a decline in electricity generation costs.
Energy experts say these mounting capacity payments remain one of the biggest obstacles to reducing electricity tariffs, leaving consumers with persistently high power bills.
