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Govt is Paying Rs. 150 Billion of Taxpayer Money Every Month to IPPs for Almost No Electricity

By ProPK Staff | Published Jul 21, 2024 | 1:05 pm

Consumers paid Rs. 150 billion per month in capacity charges during January-March 2024 to Independent Power Producers (IPPs), and many of these plants operate below 10 percent of their full capacity.

Former Commerce Minister Dr. Gohar Ejaz on July 20 shared data which showed how IPPs were easily ripping off citizens for making little to electricity during the first quarter of calendar year 2024.

“I’m sharing data from NEPRA for Jan 24 to March 24 showing a capacity payment of 150 billion PKR per month. Please note how this amount is distributed to various IPPs, with half running below 10% capacity. Four power plants are receiving 1000 crores per month each with #zero power supply.* This money, our halal income, is being given to 40 families under the guise of capacity charges,” he tweeted.

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The former minister urged the federal government to re-classify IPPs in a way that payments are only made for power produced. He said, “These plants should be declared merchant plants, where payments are made only for electricity produced, and we should buy from the cheapest suppliers. The government should not do business at the expense of the people of Pakistan”.

NEPRA must include representation from all large consumers in its distribution and management. “This exploitation must end,” he added.

Here’s the full list of 106 IPPs and how they were paid in Q1 2024:

No. IPP Jan-24 CPP (Rs.) Feb-24 CPP (Rs.) Mar-24 CPP (Rs.)
1 WAPDA Hydel 6,604,413,076 7,464,586,208 7,198,995,526
2 Pakhtunkhwa Energy Development Organization (Malakand-l) 78.869.552 122,038,812
3 Laraib Energy Limited 702.319,195 726,183,370 1,242,660,510
4 Star Hydro Power Limited 2,337,883,700 2,383,986,870 1,137,187,656
5 Neelum Jhelum Hydropower Company (Pvt.) Ltd.. 180,830,638
6 Mira Power Limited 2,986,934,207 643,705,391 643,705,391
7 Karot Power Company (Pvt.) Limited 2,199,549,827 2,199,549,827 2,199.549,827
8 Jamshoro Power Company Limited-(Genco-1) $14,643,549 143,950,427 284,152,500
9 Central Power Generation Company Limited-Genco-2) (8.457,844) 8,367,509 (52,096.949) :
10 Northern Power Generation Company Limited-(Genco-3) 1,059,418,155 2,367,959,741 1,078,774,000
11 Kot Addu Power Company Ltd. 279,796,000
12 The Hub Power Company Limited 2,668,611,160 4,121,339,984 2,666,601,367
13 Kohinoor Energy Ltd. 207.513.313 207,513,313 207.513,313
14 Lalpir Power (Private) Limited 738,040,878 738,052,158 738,052,158
15 Pak Gen Power Limited 737,144,944 737,156,209 737.156,209
16 Fauji Kabirwala Power Company Ltd. 257,228,356 50,864,234 257,228,356
17 Rousch Pak Power Ltd. 647,594,919 370,281,700 813,536,972
18 Saba Power Company (Pvt.) Ltd. 276,820,529 276,820,529 276,820,529
19 Uch Power Ltd.. 688,832,432 631,055,589 670,229,265
20 Liberty Daharki Power Limited 498,937,071 420,407,749 420,407,749
21 PAEC Chashma Nuclear Power Plant. 1 1,259,027,325 1,278,452,367 1,474,751,842
22 PAEC Chashma Nuclear Power Plant. II 5,212,887,143 2,276,382,219 2,512,131,146
23 PAEC Chashma Nuclear Power Plant. I 4,023,353,454 3,658,273,727 3,972,325,069
24 PAEC Chashma Nuclear Power Plant. IV 3.993,894,252 3,725,738,665 3,549,048,331
25 Karachi Nuclear Power Plant-Unit-2 4,011,065,768 19,977,874,262 16,819,284,250
26 Karachi Nuclear Power Plant-Unit-3 7,701,692,264 7,574,637,585 8,142,091,325
27 Tavanir Iran 234,440,343
28 Attock Gen Limited $18,081,441 (60,700.025) : 251,255,297
29 Atlas Power Limited 332,632.643 (50,423,909) 407,903,025
30 Nishat Power Limited 484,678,533 297,713,835 1,133,672,472
31 Foundation Power Company Daharkl Ltd. 210,142,479 358,608,238 425,230,756
32 Orient Power Company (Private) Limited 294,734.112 372,390,876 389,018,899
33 Nishat Chunian Power Limited 263,808,512 306,842,149 338,171,900
34 Saif Power Limited 211,075,619 213.405.891 290,878,795
35 Engro Powergen Qadirpur Limited 193,390,227 109,720.574 175,169,411
36 Sapphire Electric Company Limited 217,282,292 167,771,794 212,810,973
37 Narowal Energy Limited 337,129,692 701,960,094 446,193,472
38 Liberty Power Tech Limited 442.460.285 303,851,434 298,866,724
39 Halmore Pawer Generation Company Limited 452.019.104 372,321,497 390,041,244
40 Uch-1 Power (Pvt.) Limited 1.946.918.661 1,956,851,075 2.393.762.233 2,999,764,295
41 JDW Sugar Mills Ltd. 11 134,483,723 30,436,736 35.446,866
42 JDW Sugar Mills Ltd. 162,600,817 115,579,369 129.546,777 129546,
43 RYK Mills Limited 7,420,953 102.337,070 157,919,446
44 Chiniot Power Limited 308,071.192 231.428.565 99.989,799
45 Hamza Sugar Mills Limited 82,352,319 90,610,275 78,192,803
46 Almoiz Industries Limited 90,121,336 22,687,221
47 Chanar Energy Limited (404,633) 62,004,896 57,428,031
48 China Power Hub Generation company (Pvt.) Ltd 12,135,475,471 10.016.108,670, 10,838,648,165
49 Engro Powergen Thar (Pvt) Limited 5,366,166,523 4,822,480,682 5,180,794,895
50 Thal Industries Corporation Ltd 113.371.509 262,771,134
51 Quaid-e-Azam Thermal Pow Power (Pvt) Limited 2,672,204,704 2,714,511,827 6,134,913,037
52 National Power Parks Management Company Private Limited HBS 2,639,913,659 2,705,628,328 2,744,885,513
53 Huaneng Shandong Ruyl Energy (Pvt) Ltd 8,639,032,312 9,098,002,570 11,056,023,305
54 National Power Parks Management Company Private Limited Balok! 2.452.071.957 2,600,503,887 2,572,093,184
55 Port Qasim Electric Power Company (Pvt.) Limited 10,696,512,419 9,850,940,094 10,972,686,260
56 Lucky Electric Power Company Limited 6,167,432,619 4,528,588,310 2,904,428,234
57 Punjab Thermal Power Private Limited 3,515,848,628 3,417,617,018 3,710,950,030
58 Zorlu Enerji Pakistan Limited 173,427,477 (11,232,432) 134,819,528
59 FFC Energy Limited 64,997,080 81,689,962 98,159.392
60 Three Gorges First Wind Farm Pakistan (Private) Limited (139,290,374) : 70,115,234 160,894,504
61 Foundation Wind Energy-l Limited 859.734.636 203,424,939 335,159,272
62 Sapphire Wind Power Company Limited 582,771,946 429,777,633 251,443,270
63 Yunus Energy Limited 299,214,919 232,332,832 NARY,848
64 Metro Pawer Company Ltd 333,141,770 223,785,278 591,479,240
65 Gul Ahmed Wind Power Ltd 931,671,020 181,130,737 708,874,764
66 Master Wind Energy Limited 314,546,549 251,801,301 254,341,052
67 Tenaga Generasi Limited 760.562.862 436,874,525 330,653,797
68 ACT Wind (Pvt) Limited 109,031,814 92,712,526 152,622,682
69 Hydrochina Dawood Power (Private) Limited 108,760,383 135,790,232 547,013,58 :
70 Sachal Energy Development (Private) Limited. 262,037,320 274,260,155 260.902.438
71 UEP Wind Power (Pvt) Ltd 1,806,872,819 213,810,258 1.539.883.383
72 Quald E Azam Solar Power Pvt Ltd 1.295.348.476 565.956.043 547,799,056
73 Appolo Solar Development Pakistan Limited 351,435,664 617,173,323 835,160,194
74 Best Green Energy Pakistan Limited 360.345.473 646,350,610 783,779,316
75 Crest Energy Pakistan Limited 363 734.370 : 664,723,403 803.657.882
76 Harappa Solar (Pvt) Limited 24.955.944 140,089.837 90,393,050
77 A Power (Private) Ltd. 59.831.2351 37,864,259 53.195.876
78 Artistic Energy (Pvt.) Limited 243.113.388 122,465,929 188,182,662
79 Jhimpir Power (Private) Limited 306,038,543 292,356,907 224,417,425
80 Hawa Energy (Private) Limited 337,531,302 254.238.783 285,903,138
81 Three Gorges Third Wind Farm Pakistan (Private) Limited 104,868,035 228,611,924 492.864.552
82 Three Garges Second Wind Farm Pakistan Limited 99,467,689 462.808,144 252,738,040
83 Tricon Boston Consulting Corporation (Private) Limited A 464,128,271 585,068,502 301.474.612
84 Trican Boston Consulting Corporation (Private) Limited B 461,85B,746 294,048,040 297.993,178
85 (Private) Limited C Tricon Boston Consulting Corporation ( 492,704,778 300,610,853 293,478,735
86 Zephyr Power (Pvt.) Limited 117,539,490 95,000,000 246,973,211
87 Founication Wind [Pvt.) Limited 874,176,103 233,998.110 291.260.099
88 Master Green Energy Limited 363,769,736 29,669,895 284,520,846
89 Lucky Renewables (Private) Limited 62,940,205 66.981,980 16,806,659
90 ACT2 DIN Wind (Pvt) Ltd. 39.550,204 188.123.753 163,145,349
91 Artistic Wind Power (Pvt) Ltd. 217,888,352 64,916,849 202.440.366
92 Indus Wind Energy Ltd. 130.312.892 60,640,524 45,532.677
93 Lakeside Energy Limited 103,288,199 101,904,800. 114,130,275
94 Liberty Wind Power-I Ltd. 118.276.692 127,035,735 85,939,032
95 DIN Energy Ltd… 38,293,464 124.451.620 186,736,049
96 Gul Ahmed Electric Limited 308,563,690 34.934,767 212.471,349
97 Atlas Solar Limited 91,618,925 194,566,232 254,449,402
98 Liberty Wind Power-ll (Pvt.) Ltd. (39,294,480) 120,682,757 88,573,524
99 NASDA Green Energy Limited 116,867,208 116,383,657 101,767,676
100 Metro Wind Power Limited 282,637,505 179,146,306 215,700,611
101 Thar Energy Limited 4,041,300,298 2.723.020.357 1,377.325,619
102 Thar Coal Block-1 Power Generation Company (Pvt) Limited 17.295.870,026 12,627,049,159 18,779,319,513
103 ThalNova Power Thar (Pvt.) Ltd 4,060,279,171 2.738,568,316 1,393,929,536
104 Helios Power Limited 97,299,390 (45,786,203) 59,996,851
105 Meridian Energy Limited 129,819,660 (66,434,338) 60,712,947
106 NDS Energy Limited 123,866,430 (51,032,147) 49,679,224
Total 150,470,379.521 146,929,412,549 157,422,656,791
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Solution: No Capacity Payment!!!

In a follow-up today, the ex-minister revealed that the government, due to “corrupt” IPP agreements, is purchasing electricity at exorbitant rates.

He said, “Government is buying because of these IPP agreements, the highest electricity units at Rs. 750 per unit from a power plant, while it is buying at an average of Rs. 200 per unit from coal power plants. Above Rs. 50 per unit from Wind and Solar. All below 20 percent of capacity and payment made to IPPs is Rs. 1.95 Trillion and [the] balance [of Rs.] 160 Billion is under verification. [The] government is making capacity payments of Rs. 140 billion to one plant at a 15 percent load factor, Rs. 120 billion to another plant at a 17 percent load factor, and Rs. 100 billion to a third plant at a 22 percent load factor. This totals Rs. 370 billion for just three plants, running at 15 percent load factor all year”.

He criticized the “capacity payment” term in contracts that allows for over-invoicing and results in substantial payments to IPPs without electricity production. He proposed eliminating capacity payments, advocating for payments only for electricity purchased from the cheapest suppliers.

Ejaz stressed that all IPPs should be treated as merchant plants, noting that 52 percent are government-owned and 28 percent are privately owned within Pakistan, meaning 80 percent are Pakistani-owned. He urged the public to rise against these exploitative agreements with 40 families. “Electricity being sold to us at Rs 60 per unit is only because of these corrupt contracts, mismanagement and incompetence. Please, all must rise against these agreements with 40 families to save your Country,” he added.

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ProPK Staff

  • IPPs owners are in each party who will take action against them who robbing us under legal cover.

  • List includes Nuclear power plants of Chasma and Karachi. List also includes Jhelum Neelum and Quaid E Azam solar park.
    These projects don’t belong to any family. They belong to China and the government. So we can say that government is looting the public as well?

      • @angry guy no you are wrong. They are being provided with capacity charges. It means that they are getting money without producing full amount of electricity. Capacity charge is fixed irrespective of the total generation

        • Just by looking at capacity charges you cannot say much because the chart does not say how much electricity they actually produced. Capacity charge is fixed as a percentage of total capacity, I recall it is 80% of the total capacity but am not sure. So, if a plant is running at 80% or more then it is just getting the money for what it is producing.

          • This is eye opening statement by ex minister. It shows the reality related regarding corrupt people. These people are looting our money and enjoying in foreign countries along with their families

  • They open their mouth when no longer in power. What did he do in this regard when he was in the interim government?
    The misfortune of our people is that they are dumb. Expect for dharnas in Fauza Abad choke, they have got no other cause to protest.

      • he was in power in caretaker setup. was he sleeping he owns lake city ipp see the bills of those people he is biggest culprit.

        • Caretaker setup had no power. They were just used to implement steps for the coalition govt (if u want to call it that) . We all know lumber 1 govt didn’t know how to handle it

          • don’t agree what you are talking caretaker setup privatized PIA which no party could have ever done.

  • Today article is eyes opener,Why not government pay to Net metering solar panels energy producing.Where government investment is zero.The individuals invest in solar system and pay almost 1.5 lac for Green metering.
    So, government must pay to Net metering Owners at least Rs. 30 per unit.if they are paying to those who are not producing the single unit.

  • It Should be stopped now, Net metering should be continue as government should buy from public ipps are looting poor Pakistani people, Surprisingly no government official or courts are taking notice this big thing can change Pakistan people economic conditions, it should be stopped immediately with wisdom.

  • why the gentleman is exposing this now ? IPPs have come in this country since 1900s and more from 2008 till 2015. So, why he is exposing today ? the people of Pakistan knew about this scandal but no person like Gohar sb took it seriously, why today ? bcz people like Gohar sb pocket has started to pinch, that is why ?

  • Ye apni miniatri je doraan chany beechta raha kya. During 2019 to 2020 pkr 300 billion was waived off for KES one of famous person friend of the then PM

  • It is humiliation which is beyond our thought, thses statistic give a bleak future of our already chequered economy , why no thing is rolling on the ears of our government, our crunched economy is in dire need of upright and dedicated economists to steer out our country, Dr sahib stay in filed and be given the awakening calls to the Government and one day ,may we all be able to bring the establishment on table to think seriously about these anti state IPPs and their over burdened contracts .

  • Govt should pay 30 per unit to solar walas as they provide electricity without using a single dime from govt . Sun provides energy for free.

    Every house should be an ipp .

    • Govt is providing solar panels people are not willing to buy them solar panels have risk of theft not many people roof are safe.

  • I don’t know..when they serve as part of cabinet..where does their dignity and honesty lye..they only speak truth and show care for Pakistan when they become “former” or get on opposition benches

  • Simply wish to say your article is as amazing The clearness in your post is just nice and i could assume youre an expert on this subject Well with your permission let me to grab your feed to keep updated with forthcoming post Thanks a million and please carry on the gratifying work

  • Who are 40 families that the corrupt government is extorting money on behalf of from the public ?
    Expose , name and shame them so Pakistan can be free of these burdens and we can all go and storm their houses where they store all the nations wealth.

  • Pro Pakistani , why are you making the owners of these corrupt IPPs anonymous?
    Name and Shame this criminal mafia who is minting profits while driving poor people to suicide? Should they beg for milk which is more expensive than in Paris to feed their children or should they die of heatstroke because they can’t afford to have electricity at home. They can’t runt their water pumps should they die of dehydration? Will you speak up for them or are you also indifferent because you are getting your electricity for free?

  • bohat zabrdst sir ap ne awaz uthai ye ipps ne pakistanio ka khoon nichorlia he .. or ye ipps k head bhi Pakistani hi he .. in se contract khtam hona chahiye or humari aapil he hukumrano se ie plz Pakistan or pakistanio ko Bachale ipps se Jan chura de….

  • Talking about number of plants and families running them is not the right way to go. I see that even WAPDA is listed as IPP. What percentage of 150 Billion is going to government owned plant and what to Pakistani owned plants and to foreign owned plants? We should figure out the plants which account for 90% of this 150 billion, they will probably be just a few. Should concentrate and them and try to figure out what would be the best way forward. If a large chunk of that money is going to WAPDA and PAEC then it is just government giving money to government organizations. There are some very small plants using things like wind and solar, something which was not as readily available in the 90s. So the agreements made in the 90s should be judged in accordance with the conditions prevailing at that time. If government is to set the rate and how much it will purchase from a plant being set, then it is natural for the private party to ask the government to guarantee input cost (fuel charges) and the minimum amount the government will purchase. And the private parties have learned to include arbitration clauses in their agreements because they know one government will ask them to set things up and if their rival win the next election they will ask them to tear it down.

  • hame q bataray ho bhai…contracts humse poch k kiyay thay…jisne contract kiyay hein uskay asasay tehlil karo or iqsaat do ya jo bhi karo

  • Why criticise the person who has brought forward some data. Look at what he is presenting, not who is presenting.
    Small minds discuss people, great minds discuss ideas.

  • Should be dealt in Putin’s way but who will bell the cat ? All sitting in Government are responsible for drafting this policy!!!

  • What was the government at the time thinking (smoking) when executing these contacts ? Are they not the real culprits ?

  • Why the all were Sleeping, since long, when such disastrous Agreements were signed, which ruins the Economic stability of the Country. Who were the beneficeries, they should be accounted for, Not the public, to pay such amount from their Salaries and earnings. Businessmen and all general public, should raise their voice, to get rid of it, including the Political Parties. Govt., can save much more, and all the benefits will easily be passed on to public, the rates will be reduced, and so poverty, due to decrease in inflation.

  • Ask IPPs to move from TOP tò TAP else register FIRs against the all signatories to prove the kickbacks taken …. then move to international court.

  • if those who sign the contract has paid their home or business electric bills on capcity and not on used units then let them go

    If their own house or Business bills are paid upon bases of unit consumption then invoke article six and proceed the cases in summary trial courts.
    Allah will do good for nation.

  • Gohar Ejaz remain part of care taker set up for quite some time. He remained totally ignorant about capacity payments. Suddenly now he realized capacity payments is main evil for hike in electricity charges.
    There might be some portion of embezzlement/ mistake in installation of these IPP’S. Many factors must not be ignored that these IPP’S were installed keeping in mind the future requirement of country( unfortunately for many decades our economy remained stand still). Energy requirement could not be enhanced as no new industry was installed. We were/ are busy in point scoring on political front and rulers of establishment were more interested to extend their tenure rather than work for the welfare of country. No new dams were built. Result is we are paying the price. Gohar Ejaz shaib you are.not the only person who know that payment to IPP is main cause of rising power cost. Let’s see when you will get some responsibility in in this govt.

  • why every one is against ipp if govt of Pakistan is sincere than gop buy all ipp shares of listed ipp.

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