Senate panel slams independent power producers

Published August 29, 2023
Senator Saifullah Abro presides over a meeting of the Senate Standing Committee on Power at Parliament House Islamabad on Monday. — Senate website
Senator Saifullah Abro presides over a meeting of the Senate Standing Committee on Power at Parliament House Islamabad on Monday. — Senate website

ISLAMABAD: The Senate Standing Committee on Power on Monday joined public criticism of the “unprecedented electric bills” and directed the Power Division to provide lists of electricity defaulters and outstanding dues to all the distribution companies (Discos).

The meeting of the panel presided over by Senator Saifullah Abro discussed the unprecedented electric bills that have led to nationwide protests. On queries, the Power Division officials reported that capacity payment to independent power producers (IPPs) in the current financial year stood at Rs1.3 trillion and dollar-to-rupee conversion rate, imported prices of coal, and RLNG and Kibor were the major factors determining the capacity payments.

On another question, the official said the cost of electricity theft was around Rs467bn while the government had allocated Rs976bn for electricity subsidy for the current year budget.

Mr Abro criticised the role of IPPs and said they were the primary reason behind the unjustified electricity costs. He pointed out that IPPs had inflated the invoices of three significant power plants and unless the IPPs issue was resolved, the electricity crisis could not be effectively tackled.

Published in Dawn, August 29th, 2023

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