ISLAMABAD: The inquiry committee has recommended to recover Rs 100 billion immediately from the owners of power plants and review the signed agreements for installation of a power plant in the country, Pakistan Today reliably learnt on Saturday.
According to sources, a nine-member committee has submitted a detailed inquiry report to Prime Minister Imran Khan regarding more than Rs 100 billion losses of the power sector. They said that this 278-page inquiry report has disclosed that the cost of the installation of power plants by independent power producers (IPPs), and under government to government (G to G) agreements, power tariff, corruption in their fuel consumption, violation of merit order, guaranteed profit in dollar, and certain conditions of power purchase etc are the major reasons behind heavy losses to the national exchequer.
They said the inquiry committee has submitted an inquiry report titled ‘Committee for power sector audit, circular audit reservation and future road map.’ The inquiry committee has scrutinised the documents pertaining to the cost and tariff of more than 60 power plants and submitted an inquiry report without any single note of dissent as all members of this committee have submitted their signature on the report”, said sources.
Prime Minister Imran Khan had formed a nine-member committee headed by former chairman Securities and Exchange Commission of Pakistan (SECP) on August 7, 2019. The inquiry committee included the offices of eight organisations including Inter-Services Intelligence (ISI), Federal Investigation Agency (FIA) and SECP as members.
Sharing findings of this inquiry, the sources said that the owners of IPPs have unjustly obtained Rs 350 after 1994 as the National Electric Power Regulatory Authority (NEPRA) has approved 15 per cent profit for the power plants under the government policy while these power plants were found earning 50 percent to 70 percent profit annually. They said that the inquiry committee has recommended to immediately give an end to the formula of capacity payment based on take or pay with owners of IPPs and recovery of Rs 100 billion from the owners of IPPs.