َIslamabad:Former Interior and Commerce Minister Dr. Gohar Ejaz has raised concerns over the exorbitant electricity prices in Islamabad, stating that the actual cost should be significantly lower than the current rate of 60 rupees per unit. According to Dr. Ejaz, the government is paying independent power producers (IPPs) 60 rupees per unit due to flawed contracts, whereas the true cost of production should ideally be around 8 rupees per unit.
In a recent social media post, Dr. Ejaz questioned why power plants were contracted at 2 trillion rupees last year, burdening consumers with a 24 rupees per unit cost when the actual cost should be much lower. He emphasized that IPPs should be paid only for electricity generation and supplying the national grid, calling for the cancellation of these flawed contracts.
Dr. Ejaz further suggested that procuring electricity from the cheapest suppliers and treating them as merchant suppliers could potentially reduce electricity prices to less than 30 rupees per unit. He highlighted discrepancies in financial estimates for generators, estimating fixed capacity payments at 1.954 trillion rupees in the fiscal year 2023 and projecting an increase to 2.112 trillion rupees for fiscal year 2024.
He also pointed out that 47% of revenue in fiscal year 2023 was spent on fuel for electricity generation and anticipates a similar figure for the upcoming fiscal year. Dr. Ejaz’s critique underscores ongoing challenges in Pakistan’s energy sector, particularly concerning transparency and cost efficiency in electricity pricing.
