Ex-minister exposes power sector’s looting spree in Pakistan

Former commerce minister Gohar Ijaz has exposed the power sector’s looting spree, the 24NewsHD TV channel reported.

Taking to X, Gauhar Ijaz sought records of payments made to Independent Power Producers (IPPs) from Federal Power Minister Owais Laghari.

He demanded that the data of all 106 IPPs be made public and the nation be told about the electricity generation per the power plant’s capacity.

He said that the production cost data of IPPs should be kept before the public.

The data of the collections made by the IPPs from the consumers should also be kept before the public

Gohar Ejaz said that people want to know at what rate electricity is being provided to them.

The actual cost of electricity should be less than Rs 30 per unit, the ex-minister said, adding that the contracts with IPPs should be converted into the take and pay – a contract that obligates the buyer to take any product and if the product is not taken then they have to pay a certain amount.

Gohar Ejaz said that the government should buy cheap electricity from wherever it is available.

His tweet reads: "Dear Minister, Your Majesty; Comments that I am unaware of the Facts and Not Informed is a “True Fact “. Which I am sharing with The Nation, that I was Unaware till I Recently went into details of Energy Agreements of these IPP and All Reports by the committees.

"We are All Unaware of How we are being Robbed because of Mismanagement and Corruption in the name of Investors Confidence being shattered. If these 23400 MW IPP contracts of “Take or Pay” are Reviewed, Cancelled or Renegotiated on basis of Electricity Purchased or “Take and Pay “, if we only paid for cheapest Electricity Supplied to National Grid by converting them to Merchant Plants."

It added: "I am sharing this data again that 52% of these IPP Plants are Government owned, which are producing less than 50% Electricity of their Installed capacity and the cost of this Mismanagement ie 100% capacity payments are being charged from consumers in their Bills . The other 48 % are owned by 40 Families which are Running at 50 percent capacity but full Rs 2.112 Trillion or Rs 24 per unit has been charged, on Average to consumer in the name of Capacity payments in their bills.

He continued:  "Dear Minister I am sure you are a Competent Minister and fully informed so Pl share with the Public All 106 IPP Data. How many units produced by each of them last year against their Rated capacity, Cost of Fuel paid to them and per unit cost of units produced. Amount of Capacity payment to each of them and cost of per unit of capacity payment from each IPP. Total cost of per unit produced by each of these IPP which is charged to consumers . You are a Politician and Elected representative Serving as Federal Minister.

"Sir The Government is of the People, By the People and for the People, Pl share this Data . We want to be Aware and We want to know what we are being charged as consumers . We are Also Aware now that We have to Save Pakistan from these IPPs which are holding back Growth and Development of Pakistan as Actual Electricity cost should be less than Rs 30 per unit which should be charged to consumers not Rs 60 per unit which is being Billed."