Federal Minister Gohar Ejaz has revealed data from the National Electric Power Regulatory Authority (NEPRA) showing that from January to March 2024, Rs. 150 billion was paid monthly in capacity charges to Independent Power Producers (IPPs).
Ejaz highlighted that many of these companies operated at less than 10% capacity, with some receiving Rs. 10 billion each month despite not generating any electricity.
He criticized the current system for allowing significant payments under the guise of capacity charges, urging the government to avoid conducting business at the public’s expense.
In response, Karachi’s business community has voiced concerns over the high cost of electricity and capacity charges. The Korangi Association of Industries has called for a forensic audit of the IPPs.
The association’s President, Johar Kandhari, noted that despite the IPPs not producing electricity, they still receive substantial payments each month. He emphasized that these high costs are detrimental to both industry and everyday life.
Kandhari also compared Pakistan’s electricity costs with those of other countries, pointing out that Pakistan’s rates are much higher. He stressed that the high cost of electricity is harming both businesses and ordinary citizens.