Power consumers have been paying billions of rupees in capacity charges to IPPs, a problem for which the current government blames the “faulty agreements” inked by its predecessors. The IPPs, which had signed agreements under the 1994 Power Policy, have already been paid off their debts. The payment to the IPPs, which had signed their contracts under the 2002 Power Policy, would be completed by mid of 2021. As per the agreements signed with the IPPs, consumers are required to pay capacity charges to IPPs even if do not add electricity to the national grid. The cost of electricity has gone up and new power generation capacity has been added to the national grid.

Source: The Express Tribune April 10, 2020 16:18 UTC