As the federal government is negotiating with the unbiased energy producers to cut back electrical energy tariff, the Ministry of Energy revealed on Thursday a whopping quantity of Rs1,410 billion paid to the IPPs when it comes to capability funds over the past two years.
The Ministry of Energy knowledgeable the higher home that the federal authorities has agreements with 180 IPPs and Rs487 billion was paid in FY23 and a staggering quantity of Rs923 billion in FY24 to total 36 IPPs when it comes to capability funds.
The particulars had been introduced throughout a query hour session within the Senate on Thursday.
The paperwork, a replica of which is obtained by Geo News, acknowledged that 5 IPPs had obtained capability funds of greater than 50% of their due funds in FY2022-23, costing the nationwide exchequer Rs188.824 billion.
The companies included China Power Hub Generation Company (Pvt) Ltd, Karot Power Company (Pvt) Limited, Mira Power Limited, Neelum Jhelum Hydropower Company (Pvt) Ltd, and Star Hydro Power Limited.
In FY 2023-24, the federal government disbursed Rs769.409 billion to 12 IPPs, 50% greater than their due funds.
The companies included China Power Hub Generation Company (Pvt) Ltd, Huaneng Shandong Ruyi Energy (Pvt) Ltd, Karot Power Company (Pvt) Limited, Lucky Electric Power Company Limited, Mira Power Limited, Neelum Jhelum Hydropower Company (Pvt) Ltd, Port Qasim Electric Power Company (Pvt) Limited, Star Hydro Power Limited, ThalNova Power Thar (Pvt) Ltd, Thar Coal Block-1 Power Generation Company (Pvt) Limited, Thar Energy Limited, and The Hub Power Company Limited.
Besides this, capability funds had been made to 14 IPPs, together with 5 in FY23 and 9 in FY24 to these energy vegetation which operated solely at 10% capability or remained absolutely non-functional.
The IPPs, which obtained capability funds in FY23, included Hub Power, Rousch Pak Power Ltd, Fauji Kabirwala Power Company Ltd, Altern Energy Ltd, and Davis Energen (Pvt) Limited.
China Power Hub Generation Company (Pvt) Ltd, Port Qasim Electric Power Company (Pvt) Limited, Saba Power Company (Pvt) Ltd, Pak Gen Power Limited and others had been included amongst these companies which obtained capability funds.
Additionally, the ministry additionally unveiled particulars of energy corporations that generated electrical energy on the highest and lowest costs within the nation.
Pak Gen Power Limited topped the record of three IPPs which generated electrical energy on the highest worth of Rs36.21 per kilowatt (KW) adopted by Rs35.3 per KW by Fauji Kabirwala Power Company Ltd and Rs34.72 per KW by Nishat Chunian Power Limited 34.72.
IPPs that generated energy on the lowest charges embody Uch Power Ltd produced per KW electrical energy for Rs3.1, Thar Coal Block-1 Rs5.53 per KW, and Engro Powergen Thar (Pvt) Ltd Rs5.56 per KW.
Two days in the past, the federal cupboard had greenlighted the “settlement agreements” with IPPs operating on bagasse — a transfer that the regime says would profit the nationwide exchequer by Rs238 billion.
The growth got here two months after the premier introduced the pre-mature termination of energy buy agreements (PPAs) with the 5 oldest IPPs, with annual financial savings of Rs60 billion or round Rs411bn over the remaining time period of their contracts.
Last month, Federal Minister for Power Awais Leghari had revealed that negotiations with 11 extra IPPS had been at present underway to cut back energy tariff.
Briefing a session on the “Bijli Sahulat Package”, Laghari had stated that the federal government terminated energy buy agreements with 5 IPPs, a transfer anticipated to avoid wasting the financial system billions of rupees by lowering capability funds.
He claimed that Pakistan would now not be amongst nations producing costly electrical energy in close to future.
The federal authorities was beneath immense strain to rethink its agreements with the IPPs following outcry throughout the nation because the addition of capability cost fees inflated the facility payments past the affordability of the inflation-burdened plenty.
