Former Federal Minister for Commerce Gohar Ejaz has stated that after requesting the record of payments made to power distribution companies IPPs (Independent Power Producers). He has now said that he has read the IPP agreements and is aware of their details.

He claims that due to mismanagement and corruption, the trust of investors is being eroded, and they are being looted.

Ejaz has pointed out that the “Take or Pay” contracts for 23,400 MW of IPP capacity need urgent review, cancellation, or renegotiation.

He argued that consumers should only pay for the electricity supplied to the national grid, not the full installed capacity.

Ejaz also stated that 52% of these IPPs are government-owned but produce less than 50% of their installed capacity, yet consumers are charged 100% capacity payments.

Furthermore, the remaining 48% of IPPs are owned by “40 Families”, operating at 50% capacity but charging consumers an average of Rs. 24 per unit, totaling Rs. 2.112 trillion in capacity payments, claiming that this situation reflects mismanagement and corruption, leading to a breakdown of consumer trust and excessive financial burdens on the public.

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“The total cost per unit produced by each of these IPPs is charged to consumers,” he said.

“We are also aware now that we have to save Pakistan from these IPPs which are holding back [the] Growth and Development of Pakistan as [the] Actual Electricity cost should be less than Rs. 30 per unit which should be charged to consumers not Rs. 60 per unit which is being Billed,” he stated.