Peshawar   -   Sarhad Chamber of Commerce and Industry (SCCI) on Wednesday filed a writ petition in the Peshawar High Court against Independent Power Producers’ (APPs) agreements.

Addressing a news conference here on Wednesday, Fuad Ishaq said that in the writ petition, the SCCI prayed for conducting a forensic audit by reviewing all the IPPs contracts. The petition furthermore pleaded to take immediate steps to tackle the issue of IPPs payouts in accordance with correct parameters and bring about substantial relief for all categories of power consumers.

The writ opposed renewal and signing of new agreements with IPPs. It also called for implementation of recommendations of the special meeting of the Senate’s Standing Committee on Power regarding excess profits paid to RFO based IPPs.

SCCI president said that IPPs agreements are unbeneficial for the country’ economy and FPCCI and chambers have raised proactively voice against them. Today, he said SCCI has formally filed a writ petition in the Peshawar High Court against the IPPs agreements with the government.

Flanked by SCCI vice president Ejaz Afridi, Anjuman-e-Tajran president Haji Afzal, former SCCI presidents Riaz Arsahd, Malik Niaz Ahmad and traders’ leaders, the chamber president described IPPs a major obstacle in the economic growth, which has brought stagnation in industries, business and commercial activities. He also said IPPs are one of the biggest issues for Pakistan and the coming generation and its elimination become essential right now, adding IPPs had been installed which are now excessive of the country’s requirement.

Presenting statistical figures before the reporters, Fuad Ishaq informed that the total installed capacity of electricity in Pakistan is 45000 megawatts. He explained Pakistan’s hydel power generation remained 11,000 megawatt in the last year while nuclear 3,500MW and green energy and solar energy 3,000MW.

The SCCI chief accused that IPPs agreements were made with blue-eyed, and now agreements would be made for more than 12 new IPPs. Following the protest of FPCCI and chambers, he said renewal of agreements with six IPPs was stopped. Every year, the cost of payment on head of capacity charges is increasing and this year the government will pay Rs2800 billion to IPPs on head of capacity charges, Fuad Ishaq told media.

He elaborated, according to SCCI research, capacity payment to IPPs is being made as Rs24/kw against Rs17.31/kw as per report of NEPRA, which is clear contradiction of the agreement that had been made with IPPs, which is biggest burden on consumers that had been collecting from poor peoples’ pockets.

Fuad Ishaq said Pakistan is being cheated in the name of IPPs agreement wherein over invoicing and less heat value are being shown.

Furthermore, he said IPPs in their own balance sheets showed their profits from 36 to 45 percent against 15 to 17 per cent indicated in the agreement. He called for conduct of forensic audit and abolishing of all the IPPs contracts.

The SCCI chief gave reference to a report of NEPRA, in which Rs53 billion till June 2022 had been collected from people under the Economic Merit Order. He said decisions were made on adhoc basis in Pakistan, resultantly bringing negative economic growth and business and commercial activities to standstill the situation and increase de-industrialization.