The Senate Standing Committee on Power has requested detailed information from the Power Division regarding payments made to Independent Power Producers (IPPs) over the past 20 years.
The committee has issued a questionnaire to the secretary of the Power Division, asking for comprehensive details on these payments. Additionally, the committee seeks explanations for these payments and information on the sponsors of all privately established power plants.
The committee also demands an update on the construction costs of wind power plants and the electricity production costs over the past six years. The Ministry of Power has been instructed to provide all relevant information to the committee within three weeks.
Federal Minister of Energy Awais Leghari has indicated that the IPP issue is under review. In a media briefing, Leghari explained that the situation is being assessed from multiple perspectives. He stated, “We are evaluating the remaining operational time of each IPP and determining their overall benefit or loss. We are also considering the necessary steps to remove costly power producers and the associated financial implications.”
Leghari questioned whether the cost of removing IPPs could be justified, highlighting the complexity of the decision-making process involved.
He further stated that the price per unit of electricity should have gradually increased each year. However, the previous government kept electricity prices artificially low for political reasons.
