This payment is called a capacity charge and amounts to around 4 million Rs. However, according to NEPRA, Pakistan’s current power production capacity is 45,000 MW. For the additional 20,000 MW power plants that are not utilized and can never be utilized due to lack of demand, the Government of Pakistan is paying almost $285 million each month or $3.4 billion each year as capacity charges. This seems like collusion between the government and independent power plants to get money for doing nothing. Why is the Pakistan government contracting IPPs for power production that can never be used?
