Power consumers paid Rs400b in capacity charges

ISLAMABAD: Honest power consumers have paid Rs400 billion to independent power producers (IPPs) during the current Pakistan Tehreek-e-Insaf (PTI) government’s tenure despite no addition of electricity to the national grid, blamed on faulty agreements inked by the previous government.

According to government officials, the PTI administration has increased power tariff by Rs5.32 per unit to clear the backlog left by the previous Pakistan Muslim League-Nawaz (PML-N) government.

As per agreements signed with the IPPs, consumers are required to pay capacity charges to the power plants if they remain idle and the government does not add electricity to the national grid. These power plants remain closed either due to being lower on the economic merit order or thin demand in the country. However, consumers have still to pay the capacity charges.

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