Senate question hour: Rs923bn capacity payments made to 36 IPPs in 2023-24

ISLAMABAD: The Ministry of Energy in the Senate Thursday presented the details during the Senate Question-Hour regarding payments made to IPPs during the last two years.

Related documents were placed in the House during the Question-Hour.

According to the Ministry, in the year 2022-23, Rs487 billion in capacity payments were made to 36 IPPs. Moreover, in 2023-24, another Rs923 billion in capacity payments were made to 36 IPPs.

The House was also told that the federal cabinet approved settlement agreements with 8 IPPs and the national exchequer will save Rs238 billion due to these agreements.

According to the written reply, in 2022-23, five IPPs were paid 50 percent more than their capacity payment. These 5 IPPs were paid a capacity payment of Rs188 billion.

Likewise, China Power Hub Generation was paid Rs94 billion, Karot Power Company was paid Rs34 billion, Mira Power Limited was paid Rs10 billion, Neelum Jhelum Hydropower Company was paid Rs34 billion and Star Hydropower Power was paid Rs14 billion.

The Ministry of Energy informed the House that in 2023-24, 12 IPPs were paid 50 percent more than their capacity payment. These 12 companies were paid Rs769 billion. According to the Ministry of Energy, China Power Hub Generation was paid Rs139 billion, H Shandong Energy Rs132 billion, Karot Power Rs77 billion, Lucky Electric Rs53 billion, Mira Power Rs16 billion, Port Qasim Electric Power Rs102 billion, Star Hydro Rs19 billion, Thal Nova Rs34 billion, Thar Coal Block Rs105 billion, Thar Energy Rs31 billion and Hub Power Rs21 billion.