Crucial IPPs information 'concealed' from Senate body

ISLAMABAD: Senate Standing Committee on Power Chairman Mohsin Aziz revealed that certain individuals attempted to conceal crucial information from the committee regarding the Independent Power Procedures (IPPs) issue, ARY News reported.

Speaking to the media, Senator Mohsin Aziz also expressed concern that the committee’s request for a regional comparison of power plants was ignored.

“The committee had asked for a comparison of power plants in the country with those in neighboring countries, but it was not provided,” Senator Moshin Aziz added.

The committee was informed that a consultant is being hired for the purpose of analysing data.

Senator Moshin Aziz said that he became the Senate Standing Committee on Power chairman for serving the nation, vowing to take the matter to its logical conclusion.

He said that the National Electric Power Regulatory Authority (NEPRA) allowed IPPs to profit by 15 to 16 percent on equity.

“In contrary to the NEPRA’s permission, balance sheets of IPPs show a staggering profit of 60 to 70 percent,” the Senate Standing Committee on Power chairman added.

It may be noted the government  announced plans to shift the financial burden of payments to Independent Power Producers (IPPs) onto citizens already struggling with inflation.

During a meeting of the National Assembly’s Standing Committee on Energy, the Secretary of Energy – Fakhre Alam Irfan – stated that both the payments to IPPs and the interest on the revolving loan will be borne by the public.

He stressed that the government is being pressurized by the International Monetary Fund (IMF), and cannot afford to increase circular debt. Despite discussions with the IMF, the organization remains firm on its stance.

Read More: PM to give ‘good news’ on IPPs within month or two: Leghari

Earlier on August 20, Federal Minister Awais Leghari said that Prime Minister (PM) Shehbaz Sharif will give good news to people over IPPs within a month or two.

Addressing youth convention in Islamabad, the energy minister said that the steps being taken to address energy crisis in the country. “Reforms are inevitable in energy sector,” he said.

He said the energy billing has been 1100 billion with 400 billion losses in it.

“We silently worked over the issue of the IPPs but all and sundry joined the bandwagon,” energy minister said. “It became good for us as it brings pressure over the IPPs,” he said.