The Government of Pakistan has a power purchase law to attract new power plants, guaranteeing payment for 71% of their production each month, whether the power plant is utilized or not. This payment is called a capacity charge and is around 4 million Rs. per MW of installed capacity per month.

According to a recent statement by Minister of Energy Mr. Awais Leghari, Pakistan’s maximum energy demand was 24,000 MW per hour during the heat wave. But according to NEPRA, Pakistan’s current power production capacity is 45,000 MW.

Therefore, for the additional 20,000 MW power plants that are not utilized and can never be utilized due to no demand, the Government of Pakistan is paying almost $285 million each month or $3.4 billion each year as a capacity charge. Why is the government allowing this wastage of funds? This seems like a duplicity by the government and the independent power plants to get money for doing nothing. If NEPRA, DISCOs, or the Ministry of Energy cannot rectify this duplicity, then who can? Why is the Pakistan Government contracting IPPs for power production that can never be used?

SHAHRYAR KHAN BASEER P. ENGR.,

Islamabad.