• Criticises billing structure, says users paying far more for ‘slight overuse’
• Orders special audit of IPP payments, sectoral inefficiencies

ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday conducted a detailed review of audit objections related to the Ministry of Energy, with a focus on independent power producers (IPPs), rising electricity costs, incomplete development schemes and excessive load-shedding.

Officials from the Central Power Purch­asing Agency (CPPA-G) briefed the committee on a sharp rise in the installed capacity of IPPs from 9,765MW in 2015 to 25,642MW in 2024.

They revealed that the annual capacity purchase price had surged from Rs141 billion in 2015 to a staggering Rs1.4 trillion by 2024. In contrast, power generation dropped from 90bn kilowatt-hours in 2014 to 58bn in 2015.

Chaired by MNA Junaid Akbar Khan, the committee questioned the rationale behind these increases. PPP’s Naveed Qamar challenged the power division’s justification of rising coal prices.

Mr Akbar expressed disbelief at claims of up to 200 per cent power generation efficiency from sugarcane bagasse, while CPPA-G officials clarified that the actual output had surpassed their benchmark estimate of 45pc.

The committee also raised concerns about inefficiencies at certain power plants. Riaz Fatyana criticised the closure of staff positions at the Balloki-based Bhikki plant, questioning why salaries were still being paid despite a lack of production.

He also questioned the decision to establish the Sahiwal coal-fired power plant in a region without coal deposits, suggesting the Kalabagh hydropower project as a more logical alternative.

Senator Mohsin Aziz inquired about the actual costs of these power plants, while Junaid Akbar sought to know why surplus electricity was not being directed towards industrial and agricultural sectors.

Another critical issue raised was the electricity billing structure. The committee discussed the financial burden placed on consumers using even slightly more than 200 units of electricity. “Even if usage crosses 200 units once, the consumer ends up paying higher bills for six months,” Mr Akbar said.

Power Secretary Dr Muhammad Fakhre Alam Irfan confirmed that 58pc of consumers fell in this category and acknowledged the dilemma of subsidy requirements if the limit was raised. He added that the government was working on shifting to a direct subsidy model using BISP data, aiming to phase out the existing system by 2027.

MNA Shazia Marri slammed the power division over prolonged power outages in her constituency, reporting 15 to 16 hours of loadshedding. She questioned the lack of transparency and poor sector management.

Dr Irfan attributed the high losses to technical issues and reiterated that policy decisions were subject to IMF conditionalities, requiring prior approval.

The PAC referred the IPPs-related issues to a subcommittee and directed a special audit.

In another session, the committee took up complaints over incomplete electricity schemes. MNA Sanaullah Khan Mastikhel revealed that Rs310 million was released to the Faisalabad Electric Supply Company (Fesco) in 2021 for a new scheme in his constituency, which remained unfinished.

MNAs Aamir Dogar and Khawaja Shiraz Mehmood highlighted discrepancies in the reported number of schemes in the Multan Electric Power Company, demanding a special audit to uncover the truth.

“This is a ruthless system,” said Khawaja Shiraz, who also accused officials of enabling transformer theft and manipulating the system.

“The power sector alone is enough to ruin the country,” he said.

Published in Dawn, July 23rd, 2025