The Ministry of Energy disclosed the details of Rs1.41 trillion paid in capacity payments to Independent Power Producers (IPPs) over the last two fiscal years.
During the question hour of the Senate session, documents placed before the House revealed that Rs487 billion was paid to 36 IPPs in the fiscal year 2022-23, while Rs923 billion was disbursed to the same number of IPPs in 2023-24.
The Senate was informed that the federal cabinet had approved settlement agreements with eight IPPs, leading to projected savings of Rs238 billion for the national exchequer.
In 2022-23, five IPPs received capacity payments 50% higher than their agreed terms, amounting to a total of Rs188 billion.
According to the Ministry of Energy, China Power Hub Generation received Rs94 billion, Karot Power Company Rs34 billion, Mira Power Limited Rs10 billion, Neelum Jhelum Hydropower Company Rs34 billion, and Star Hydropower Power Rs14 billion.
The trend continued into 2023-24, with 12 IPPs receiving 50% more than their capacity payments, totaling Rs769 billion.
China Power Hub Generation was paid Rs139 billion, H Shandong Energy Rs132 billion, Karot Power Rs77 billion, Lucky Electric Rs53 billion, Mira Power Rs16 billion, Port Qasim Electric Power Rs102 billion, Star Hydro Rs19 billion, Thal Nova Rs34 billion, Thar Coal Block Rs105 billion, Thar Energy Rs31 billion, and Hub Power Rs21 billion.
The ministry highlighted that the cabinet-approved settlement agreements with eight IPPs would result in significant savings for the government. However, it did not provide specific details about the changes introduced under these agreements during the Senate session.
