ISLAMABAD   -   Perturbed over the abnormal capacity payments of multi trillion rupees, the Senate Committee on Energy has asked the Energy Ministry (Power Division) to provide the details of all the capacity payments made to the Independent Power Producers (IPPs) during the last 20 years along the names of owners of these power plants.  

The capacity payments of Rs 8.344 trillion have been made to the IPPs during last 10 years while it has been anticipated that capacity payments of Rs 2.1 trillion will be paid to the IPPs during the ongoing fiscal year 2024-25.

A letter written by the Secretary Senate Committee on Power, on the directive of the Chairman of the Committee on Power, to Secretary Power Division has asked to provide copies of the original agreements with the IPPs established in the year 1992 and later on along with the details of price per KW for each plant with comparative analysis of price of the similar plants i.e. cost of the generator and ancillaries, established during those times in the region especially in the developing countries.

Similarly, the power division has been asked to furnish the details of the rates at which the energy was purchased by other developing countries at that time. The details of capacity payments made to the power plants during the last 20 years with particular reference to the reasons of such payments either due to inability of providing evacuation or due to temporary fault in feeder evacuation.

The Power Division has been further asked to provide the details of technical faults in power plants occurred during the last 20 years along with the detail of sponsors of each power plant established in the country in private sector.

Copies of the agreements of wind power plants established during last six years with the details of their rates of the energy and the cost at which such plants had been established should also be provided, said the communication of the senate committee.

The Power Division was further asked to furnish a summary of Power Policies remained in force over different periods of time.

The details of the heat efficiency of the plants installed by IPPs; what is the current efficiency level of IPPs, what was their efficiency at the time of establishment and what is the best efficiency level of such plants globally should also be provided to the committee.

What is country’s total Maximum Demand Indicator (MDI) of electricity. The division was asked that the above information should be more focused towards the gas and furnace oil based private power plants established in the country since 1992, having installed capacity of 50 megawatts and above. The Chairman Committee has further desired that the required information should be provided to the Committee well before the next meeting which will be scheduled in the last July or first week of August so that the members may have ample time to study the information prior to the meeting to have a fruitful, focused and productive discussion.