Unveiling the Truth Behind Expensive Electricity Prices in Pakistan
A heated debate surrounding the exorbitant electricity prices in Pakistan has been the talk of the town, with many pointing fingers at costly power purchase agreements with Independent Power Producers (IPPs). Host Khawar Ghumman shed light on this issue in a detailed report on ARY News’ program “The Reporters.”
Khawar Ghumman highlighted the five most expensive IPPs in Pakistan:
- Rousch Power Plant: Providing electricity at 745 PKR per unit
- China Power Hub: Producing electricity at Rs350 per unit
- Port Qasim Electric: Supplying electricity at 177 PKR per unit
- Saba Power Plant: Generating electricity at 117 PKR per unit
- Pakgen Power Plant: Producing electricity at 95 PKR per unit
Understanding Capacity Payments
Capacity payments, paid in US dollars to IPPs, are monthly payments ensuring that these companies can meet the demand for electricity production. Former caretaker commerce minister Gohar Ejaz has been vocal about the detrimental effects of these agreements on the country’s economy.
Dr. Gohar Ejaz exposed that some plants were receiving billions without even producing electricity, further exacerbating the ongoing crisis.
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