Industries close due to IPPs’ exorbitant electricity costs: KATI

Korangi’s businesses have been driven to ruin, according to President KATI Johar Ali Qandhari, by IPPs, high electricity costs, and onerous taxes.

According to him, 60,000 people are unemployed and 350 industries have shuttered or scaled back.

He emphasized that if the IPP contracts aren’t reviewed, things will get worse.

The public was outraged, as were industrialists, about costly power and capacity payments to IPPs. Lately, a number of trade associations and chambers of commerce nationwide have bemoaned the effects of exorbitant electricity prices.

In a social media announcement on Sunday, former caretaker minister Gohar Ejaz claimed that the IPPs had received payments totaling Rs. 1.95 trillion. The former minister claimed, “The government is paying a power plant 140 billion rupees on a 15 percent load factor.” He continued, “Another plant is being paid 120 billion rupees over a 17 percent load factor, and the third power plant is being paid 100 billion on a 22 percent load factor.”

Gohar Ejaz remarked, “These are only three power plants, receiving 370 billion rupees.”

He revealed that the IPPs have provided substantial capacity quantities without producing any electricity.

“Capacity payments” is a phrase in all these contracts that permits inflated earnings, according to the former minister. He continued, “This clause results in the IPPs receiving sporadically distributed capacity payments.”

In addition, he had asked that the National Electric Power Regulatory Authority (NEPRA) represent all parties involved.

Additionally, he insisted that the agreements with the IPPs be changed to a “take and pay” arrangement.

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Industries close due to IPPs’ exorbitant electricity costs: KATI

Korangi’s businesses have been driven to ruin, according to President KATI Johar Ali Qandhari, by IPPs, high electricity costs, and onerous taxes.

According to him, 60,000 people are unemployed and 350 industries have shuttered or scaled back.

He emphasized that if the IPP contracts aren’t reviewed, things will get worse.

The public was outraged, as were industrialists, about costly power and capacity payments to IPPs. Lately, a number of trade associations and chambers of commerce nationwide have bemoaned the effects of exorbitant electricity prices.

In a social media announcement on Sunday, former caretaker minister Gohar Ejaz claimed that the IPPs had received payments totaling Rs. 1.95 trillion. The former minister claimed, “The government is paying a power plant 140 billion rupees on a 15 percent load factor.” He continued, “Another plant is being paid 120 billion rupees over a 17 percent load factor, and the third power plant is being paid 100 billion on a 22 percent load factor.”

Gohar Ejaz remarked, “These are only three power plants, receiving 370 billion rupees.”

He revealed that the IPPs have provided substantial capacity quantities without producing any electricity.

“Capacity payments” is a phrase in all these contracts that permits inflated earnings, according to the former minister. He continued, “This clause results in the IPPs receiving sporadically distributed capacity payments.”

In addition, he had asked that the National Electric Power Regulatory Authority (NEPRA) represent all parties involved.

Additionally, he insisted that the agreements with the IPPs be changed to a “take and pay” arrangement.

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Industries close due to IPPs’ exorbitant electricity costs: KATI

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PublishJuly 22, 2024 7:02 am UTC+0

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