Former minister claims IPPs with zero power generation are receiving billions in payments

Using statistics from the National Electric Power Regulatory Authority (NEPRA), Dr. Gohar Ejaz, the former caretaker minister for commerce and industries, claimed that at least four power plants, each receiving a monthly allocation of Rs. 10 billion, were not supplying any electricity.

In a tweet posted on Sunday on X (formerly Twitter), Dr. Ejaz highlighted how a significant portion of the nation’s energy budget is being misallocated, referencing NEPRA data from January to March of this year.

During this period, NEPRA disbursed a total of Rs. 150 billion per month in capacity payments to various Independent Power Producers (IPPs). Dr. Ejaz noted that half of these IPPs operate at less than 10% capacity, meaning they produce minimal electricity.

“Four power plants are receiving Rs. 10 billion per month each with zero power supply,” he stated on X.

Dr. Ejaz criticized the payment system as unjust, arguing that a considerable amount of money, which he described as “halal income,” is being directed to just 40 families under the guise of capacity charges.

Meanwhile, Pakistan plans to urge Chinese IPPs, which currently use imported coal, to switch to locally sourced coal from the Thar region. This move aims to reduce generation costs and offer relief to consumers burdened by high utility bills. Federal Minister for Energy (Power Division) Awais Leghari announced this initiative to Reuters on Sunday.