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Anticipation for Task Force on IPPs
Zaki Aijaz, the Vice President and Regional Chairman of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed strong anticipation for the task force on Independent Power Producers (IPPs) and Pakistan’s Power Sector Reforms. He emphasized the need for holding the 40 IPPs accountable and providing necessary relief to the public.
Rising Electricity Costs and Power Purchase Contracts
In a statement released on Friday, Aijaz highlighted the growing public and business community concern over the rising cost of electricity. He criticized the expensive power purchase contracts with IPPs, which he believes are making it unfeasible for industries to operate due to high tariffs.
Criticism of Government Payments to IPPs
Aijaz also criticized the government for its substantial payments to certain IPPs that are either non-operational or underutilized. He noted that these IPPs, which invested only Rs50 billion, have received Rs400 billion from the government, shifting the financial burden onto the public.
Concerns Over Power Plant Operations and Industry Impact
The FPCCI regional chief pointed out that some power plants did not supply any electricity from January to March but still received billions each month from the government. He lamented that high electricity costs have led to the shutdown of 25% of the industry due to unaffordable tariffs.
Conclusion on Capacity Charges
Aijaz concluded by stating that the government collects Rs2,000 billion annually through capacity charges from the public, which is creating an unsustainable environment for industry and exacerbating the economic crisis.
