Former Federal Minister Gohar Ejaz Criticizes IPPs Over Exorbitant Charges

Islamabad:Former Federal Minister Gohar Ejaz has criticized Independent Power Producers (IPPs) for imposing additional charges of Rs. 24 per unit on consumers due to what he termed as ‘unethical’ contracts. According to private TV reports, Ejaz stated that in the past two years, 50% of the 23,400 megawatts generated by IPPs remained underutilized. He pointed out that coal-based IPPs with an incoming capacity of 5,000 megawatts operated at 25% less capacity in the last two years but continue to charge the full capacity charges amounting to Rs. 692 billion. Wind operations, despite running at less than 50% capacity, charge Rs. 175 billion per unit in additional charges, while RLNG-based plants charging Rs. 180 billion despite operating at 50% reduced capacity. Ejaz emphasized that without renegotiating IPP contracts, the country cannot progress, stressing that these electricity rates are unsustainable for industries and unaffordable for domestic consumers, placing a burden of Rs. 2 trillion annually on closed power houses.