ISLAMABAD: An annual report on Independent Power Producers (IPPs) payments has revealed that five major power companies received tax-free payments despite varying levels of operational capacity.
The report reveals that Hub Power was paid Rs 260 billion while operating at 16 percent capacity, Engro received Rs 74 billion at 54 percent capacity, and Lucky Group was compensated Rs 62 billion at 28 percent capacity.
Moreover, Sapphire received Rs 34 billion at 34 percent capacity, and Mian Mansha’s powerhouses, operating at 13 percent capacity, were paid Rs 25.6 billion.
According to local media reports, these payments are made annually based on existing agreements, and any irregularities are to be reviewed by the audit department.
The Ministry of Energy stated that if any irregularities are found, strict action will be taken.
Former Caretaker Minister Gohar Ejaz previously highlighted that the government is paying two trillion rupees to IPPs, which are only generating 30 percent of their capacity.
At a press conference, Ejaz criticized the payments, saying that 70 percent of the compensation is being paid for unused electricity. He emphasized that IPPs should be paid based on the actual electricity they produce.
Ejaz announced that a petition is being prepared to be submitted to the Supreme Court, advocating for a forensic audit of IPPs’ operations. He underscored that it is not the government’s role to engage in business activities.
