Chairman NEPRA admits mistakes in IPP pricing

ISLAMABAD: The Chairman of the National Electric Power Regulatory Authority (NEPRA) Waseem Mukhtar acknowledged errors in the pricing of electricity from independent power producers (IPPs).

Speaking at a Senate Standing Committee meeting chaired by Rana Mahmoodul Hasan, Mukhtar admitted that paying IPP plant companies in dollars as incentives was a mistake.

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Mukhtar explained that if the economic conditions remain stable and investor confidence is maintained, electricity prices will not increase. He noted that the instability of the Pakistani rupee has led investors to demand payments in dollars.

He also pointed out that balancing the interests of the government, electricity companies, and consumers presents a significant challenge, and new power generation plants are not being developed. Mukhtar added that following a power shortage after 2007, Chinese-assisted power plants installed in 2013-14 were incentivised with dollar payments.

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Senator Abdul Qadir called for a forensic audit of IPPs, alleging they have profited from over-pricing over the past decade.

The committee members expressed concerns that rising electricity prices are causing public dissatisfaction, attributing the issue to the IPPs’ financial practices.