Gohar Ejaz demands forensic audit: IPPs assailed for ‘pocketing’ Rs200bn

ISLAMABAD: Former caretaker Minister of Commerce Gohar Ejaz on Thursday censured the Independent Power Producers (IPPs) for allegedly pocketing hefty amount of Rs 200 billion under the guise of capacity payments without generating a single unit of electricity.

Addressing a press conference, he demanded forensic audit of payments made to the IPPs and questioned the efficiency of the country’s energy policies.

Ejaz, supportive of the business community clamouring to scrap deals with the IPPs, stated that the country’s business community wants transparency and accountability in the energy sector.

Power Minister, Sardar Awais Leghari maintained that the former Minister is ‘ill informed’ adding that IPPs agreements cannot be probed.

The former caretaker Minister, active against IPPs, is demanding that payment should only be made for electricity bought and not for loans taken by the power generation projects.

He further contended that first the government should do away with capacity payments to its own power plants, adding that electricity price and loans should be treated separately.

Ijaz pointed out that rate of electricity is Rs 60 per unit for residential and Rs 80 per unit for commercial use; he, however, did not mention that taxes and surcharges are also included in the final rate payable by consumers.

The FPCCI has already announced it will approach the Supreme Court of Pakistan, and seek an investigation of these pacts to reform the energy sector.

The power sector Regulator i.e. NEPRA has also made it clear that pacts with power producers cannot be reviewed unilaterally as investors will lose trust in government policies.

He also demanded forensic audit of non-operational plants, suggesting that a Supreme Court-led inquiry could uncover significant irregularities.

Former caretaker Minister claimed credit for an increase in exports by $3.5 billion.

Copyright Business Recorder, 2024