Despite operational issues, all power plants have continued to receive capacity payments, placing a significant financial strain on the government. From 2015 to 2024, over Rs 1200 billion was paid to 26 power plants across the country that run on imported fuel, including both gas and furnace oil, even during periods of shutdowns or breakdowns.
Documents from the Central Power Purchasing Agency (CPPA) reveal that these payments were made to plants operating on imported gas and furnace oil. Specifically, 11 plants installed under the 1994 and 2002 power policies use imported gas, while 15 use furnace oil.
In the past decade, over Rs 758 billion was allocated to furnace oil plants, and Rs 536 billion went to those using imported gas. The CPPA documents also expose significant inefficiencies, with many plants operating at the lower end of the merit order due to high fuel consumption and poor electricity generation efficiency, leading to their classification as “white elephants.”
Technical faults and extended shutdowns were common, with some plants running only when absolutely necessary. Despite these problems, all plants continued to receive their capacity payments, further straining financial resources.
It may take another month to compile detailed data for the period before 2015, potentially increasing the total payments over the years. These findings highlight concerns about the cost-effectiveness and sustainability of relying on imported fuel for power generation in Pakistan.
