Senate panel questions billions in capacity payments to idle IPPs

A Senate Standing Committee has raised concerns over billions of rupees in capacity payments made to non-operational Independent Power Producers (IPPs), criticising both the National Electric Power Regulatory Authority (NEPRA) and some IPPs for allegedly undermining the government's solar energy policy.

 

During a meeting chaired by Senator Rana Mahmood Ul Hassan, the committee questioned the continued capacity payments to idle power plants, describing them as an unnecessary burden on electricity consumers. It also criticised NEPRA for failing to provide tariff determination details despite repeated requests and directed the regulator to submit comprehensive data on IPPs, including tariffs, generation capacity, installation costs, and rate analyses.

 

The committee unanimously called for a comprehensive performance audit of NEPRA and decided to refer the issue of unauthorised increases in the salaries and allowances of the regulator's chairman and members to the Public Accounts Committee (PAC). According to the Cabinet Division, the pay increases were implemented without federal government approval.

 

Lawmakers also urged a review of electricity tariffs, renegotiation of IPP contracts where necessary, and the termination of unnecessary projects to help reduce electricity costs for consumers. The committee further announced that frequent changes in petroleum prices would be taken up in its next meeting.