Former caretaker minister Gohar Ejaz has revealed that some power plants in Pakistan are selling electricity to the government at a rate as high as 750 rupees per unit.
Gohar Ejaz, who also serves as the Chief Patron of the All Pakistan Textile Mills Association (APTMA), provided details on the government’s electricity expenditures. He highlighted that while the average purchase price from coal power plants is around 200 rupees per unit, the rates from wind and solar sources exceed 50 rupees per unit. However, certain power plants have charged the government 750 rupees per unit. Collectively, these three plants have received 370 billion rupees.
He criticized the contractual arrangements known as ‘capacity charges,’ which enable IPPs to secure substantial payments despite their underutilized capacities. He observed that these plants typically operate at a 15% load factor throughout the year.
Ejaz advocated purchasing electricity only from cost-effective power plants. He pointed out that the government owns 52% of these plants, and the G-sector owns 28%, indicating that 80% of the power plants are public assets.
He urged the public to oppose contracts with these 40 families, which he views as detrimental to the country and left the decision regarding future dealings with IPPs to the national populace.
The former minister expressed concern over the financial burden these contracts impose on the nation, leading to domestic consumers paying thousands of rupees in monthly electricity bills. He suggested that electricity costs could be significantly reduced within 60 days with proper governmental actions.
