IPP payments over a 10-year period
IPP payments details the Senate Standing Committee on Energy has sought details of payments made to Independent Power Producers (IPP) over the last ten years. Senate Standing Committee on Energy met under the chairmanship of Senator Saifullah Abaru. During the meeting, the issue of the recent increase in electricity bills was discuss.
Caretaker Power & Energy Minister
The standing committee summoned the caretaker energy minister and energy secretary, the chairman said where are the minister and secretary? Summon them, the committee immediately summoned Chairman Nepra as well. The chairman of the standing committee said that the tariff has become beyond the reach of the people, why is the chairman of Nepra showing non-seriousness, the committee summoned the chairman of Nepra along with the provincial members.
Maintain Security, Law, and Order
The members of the committee said that the rest of the agenda should postpone, and the agenda of the bills should be kept at the top. Meetings are being held to maintain security, law, and order. The members of the committee said that at present people are protesting against the increase in electricity bills, the country is going towards civil disobedience, Nepra and Power Division are showing irresponsibility.
Ten-year details of the Payments to the IPPs
The Standing Committee sought details of payments made to Independent Power Producers (IPPs) during the last ten years, the committee express displeasure over not providing records of payments made to IPPs during the last ten years. The members of the committee said that the ten-year details of the payments to the IPPs should given, The IPPs have done wrong billing, and they want to see on what basis the payments were made. How done, the entire power sector has been ruin by IPPs. It may recall that last week, protests against high electricity bills continue across the country, while political parties and businessmen stage protests and shuterdown strikes in other parts of the country.
IMF displeasure and Public censure
While trying to avoid IMF displeasure and public censure, the government was face with a very complicate situation. In a cabinet meeting chaired by Caretaker Prime Minister Anwar-ul-Haq Kakar, the caretaker set-up expressed helplessness over the matter. Even the proposal to pay electricity bills in installments cannot be consider viable without the approval of the IMF. It may be recall that yesterday’s Dawn report said that the amount due to Independent Power Producers (IPPs) by the end of this year has reach Rs 20 trillion due to heavy payments of capacity charges.
Former Chief Executive Officer
The overall financial impact is also gradually being pass on to electricity consumers. In the form of higher bills due to taxes and line losses of billions of rupees. A former chief executive officer of a power distribution company (DISCO). Referring to capacity payments. Says that no one is thinking about the critical issues that are putting enormous financial pressure. On consumers due to high bills. He further said that free units to power sector employees are very rare. As capacity payments have reach Rs 20 trillion. Technical and commercial losses and various taxes have also led to a massive increase in the rate per unit.