ISLAMABAD: As citizens struggle with soaring electricity bills, a high-level business delegation is set to meet President Asif Ali Zardari on Thursday to address concerns about the excessive capacity charges levied by independent power producers (IPPs) and their impact on the economy.
Led by Gohar Ejaz, Chairman of the Economic Policy and Business Development Think Tank, the delegation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will include 45 presidents of various chambers of commerce and industries. The FPCCI plans to challenge the IPP agreements in the Supreme Court, citing exorbitant costs.
According to a report prepared for the meeting, Pakistan’s power generation capacity is 43,500MW, with government plants accounting for 52%, private sector plants 28%, and foreign investors 20%. The IPPs operate on a ‘take & pay’ basis, receiving full capacity payments regardless of production levels.
The report highlights that government plants operate at 33% capacity, charging Rs950 billion annually, while private plants operate at 36% capacity, charging Rs1.15 trillion per year. Consumers are paying between Rs60 and Rs80 per unit for electricity, with the FPCCI advocating for capacity payments to be based on actual production, reducing costs to Rs8 per unit from the current Rs24 per unit.
Story by Mubarak Zeb Khan
