Between January and March 2024, consumers paid Rs150 billion monthly in capacity charges to Independent Power Producers (IPPs), many of which operated below 10% capacity.

Former Commerce Minister Dr. Gohar Ejaz highlighted that, despite these payments, many plants produced minimal electricity.

Ejaz criticized the current system, revealing that four power plants received Rs100 billion each per month without supplying any power.

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He urged the government to shift to a payment model based solely on electricity produced, suggesting IPPs be classified as merchant plants.

He condemned the excessive rates paid under corrupt agreements and called for eliminating capacity payments, advocating for purchasing power only from the most cost-effective sources.

Ejaz also pointed out that, out of the total Rs1.95 trillion paid to IPPs, Rs370 billion went to three plants operating at low capacity factors.

He highlighted that such exploitative agreements, often benefiting a small number of families, are contributing to high electricity costs and urged public action against these practices.

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