Editorial
The data released by NEPRA for the period of January 24 to March 24 reveals some alarming statistics regarding the capacity payment in the power sector, amounting to a staggering 150 billion PKR per month. This substantial amount is distributed to various Independent Power Producers (IPPs), raising concerns due to the revelation that nearly half of these IPPs are operating well below their full potential at less than 10% capacity. It is disconcerting to note that four power plants are reportedly receiving 1000 crores per month, despite providing zero power supply.
Gohar Ijaz has tweeted alarming facts about it. This significant sum, constituting our halal income, is being channeled to 40 families under the pretext of capacity charges, sparking justified outrage among concerned citizens. There is a growing sentiment that these power plants should be classified as merchant plants, where payments are contingent upon the actual electricity produced. This would enable the government to procure power from the most cost-effective suppliers, rather than engaging in what appears to be an unjust and unbalanced financial arrangement. It is imperative that the government prioritize the interests of the people of Pakistan and refrain from engaging in business practices that may potentially burden the populace with unnecessary costs.
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Moreover, it is evident that NEPRA must undertake a comprehensive restructuring of its composition and management, incorporating representation from all major consumers to ensure a fair and equitable distribution of resources. The prevalent exploitation of the power sector must be brought to an end, signaling a collective call for meaningful reform in the energy industry. This sentiment is echoed by Gohar Ijaz’s recent retweet, underlining the growing consensus on the need to address the issue of capacity payments in Pakistan.
It is essential for the authorities to convene and address this pressing matter, seeking viable solutions and strategies to rectify the distribution of capacity payments. Upholding transparency and fairness is paramount, and as such, addressing this issue is crucial for the sustainable development and equitable distribution of resources in Pakistan.
