Sawal Yeh Hai | Maria Memon | ARY News | 21st July 2024

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Why is PMLN govt helpless in front of IPPs? - Gohar Ijaz Told

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00:00Assalam-o-Alaikum, I am Mariami Manoj from Top Stories.
00:14Is it difficult to get rid of capacity payment surcharge?
00:18We will talk about this in the first part of the program.
00:20And who is going to get the electricity bills that are being withdrawn from our pockets?
00:25We will discuss this.
00:26After that, will the KP government be approved or not?
00:29Mulana Fazlur Rehman suddenly announced yesterday that he was given a commitment by Tehreek-e-Insaf
00:34that the KP government will be approved.
00:36We will talk about this in the second part of the program.
00:37In the last part of the program, we will talk about the Nazar-e-Sani Appeal.
00:39The judges' bench will be divided.
00:41Hassanat Malik will be the last part of the program.
00:43We will talk about this.
00:44But let's start with the electricity bills.
00:47They are talking about the sky.
00:50Your electricity bill has also increased so much that your electricity bill is more than your house rent.
00:56So do watch this program, this segment.
00:58The electricity bills in all our houses are talking about the sky.
01:02Who is going to get the money that is being withdrawn from our pockets?
01:06We will talk about this in today's segment.
01:09Today's news is that how the IPPs are being given billions of rupees in the name of capacity payment
01:16when many of the IPPs are not even generating electricity.
01:19And this claim was made.
01:20The former minister of finance, Mr. Gauhar Ijaz tweeted today.
01:24And in this tweet, he said that due to the government IPPs agreements,
01:28electricity from some power plants is being purchased at a rate of Rs. 750 per unit.
01:32While from coal power plants, electricity is being purchased at a rate of Rs. 200 per unit
01:36while from wind and solar, electricity is being purchased at a rate of Rs. 50 per unit.
01:42These most expensive IPPs have been paid Rs. 1.95 trillion.
01:49The government is paying Rs. 140 billion for one plant at a rate of 15% load factor,
01:53Rs. 120 billion for the second plant at a rate of 17% load factor
01:57and Rs. 100 billion for the third plant at a rate of 22% load factor.
02:04This makes Rs. 370 billion for just three plants.
02:08Electricity is being sold to us at a rate of Rs. 60 per unit.
02:11This is only because of these corrupt contracts, mismanagement and incompetence.
02:15In order to save your country, you should stand up against these contracts
02:18which are benefiting only 40 families.
02:20Many of you may not know what a capacity payment is,
02:24so let me explain it to you in a simple language.
02:27In order to end the increasing demand for electricity and load shedding in the country,
02:31different governments have made agreements with the IPPs in the past.
02:34Now, despite not providing electricity to these private companies,
02:38a monthly payment of Rs. 1 billion is made, which is called a capacity payment.
02:43Just take a look at the increase in capacity payment in the past 10 years.
02:48Here are the figures of 2013, which were revealed by the Prime Minister himself.
02:52In 2013, we paid Rs. 185 billion as a capacity payment.
02:58And according to the approximate estimate,
03:01this has increased to Rs. 2010 billion in 2024.
03:06You can see the exponential rise in this.
03:08And next year, there will be more increase in this and it will continue to increase.
03:12In these 10 years, there has already been an increase of Rs. 1800 billion.
03:17How much more will this increase be?
03:20This is a very big question mark.
03:22When there is a capacity payment,
03:24it is a very fancy word,
03:27but conceptually, how does it affect your bill?
03:30Let me explain this to you in a simple language.
03:32In the electricity bill, the fee unit capacity payment is fixed at Rs. 18.39.
03:37Due to the lack of electricity supply, power plants are shut down,
03:41but their revenue continues to flow from the electricity bill.
03:44People's National Grid Station, through solar power,
03:47continues to collect revenue from other people's electricity bills.
03:51Now, who has the ownership of the IPPs installed in Pakistan over the period of time?
03:57This is also a very interesting breakdown.
03:59We will talk about this too, but how many IPP plants are being paid,
04:03but they are not generating electricity?
04:06This is a very interesting fact and we will share it with you today.
04:09There are three such IPP plants,
04:11which are not generating electricity at all,
04:14but still they are losing money due to the lack of capacity payment.
04:18There are 37 such plants,
04:20which are generating less than 25% electricity,
04:23but still they are being paid in full.
04:26There are 60 such plants,
04:28which produce a little more than 25% electricity,
04:32and they are also being paid in full.
04:35Let me show you a small example.
04:37There are three such companies,
04:39which are not generating electricity at all,
04:44but still they are being paid in full.
04:47We will talk about this with reference to the data shared by Mr. Gauhar-e-Jaas.
04:52But who owns the IPPs in Pakistan?
04:55This is an important question.
04:57If there are such expensive contracts,
04:59can't we renegotiate them?
05:01Are there companies from other countries?
05:03If there are such contracts,
05:05which can be challenged in the international court,
05:07then why aren't we renegotiating them?
05:09Why are we being paid?
05:10Let me show you this breakdown.
05:1228% of the IPPs in Pakistan,
05:15are owned by the private sector.
05:1952% of the IPP plants are owned by the government.
05:2520% of the IPPs are owned by foreign companies.
05:29If you look at the breakdown,
05:3180% of the IPPs are owned by the Pakistanis,
05:36and their capacity payments are collected.
05:41Mr. Shahid Khan Abbasi,
05:43former Prime Minister of Pakistan,
05:45has been in office for quite some time now.
05:47There were agreements regarding capacity payments.
05:49He was asked,
05:51was the process of bidding fair?
05:53Was there transparency?
05:55Why wasn't there?
05:57We ensured that there were agreements.
06:00He admitted that the bidding process
06:02should have been done,
06:04because these plants are not used in winters.
06:06We should have put the initial few IPPs
06:08on upfront tariffs.
06:10After that, we would have bid on tariffs.
06:12We would have defined the plant.
06:14We would have given an efficiency level.
06:16We would have bid.
06:17We would have received market-based bids.
06:1918% rate of return would have been guaranteed.
06:21We wouldn't have had to make tariffs.
06:24Our per capita consumption of electricity
06:27is still half of that of India.
06:29In winters, your demand doesn't go above Rs. 8,000-9,000.
06:33You have to shut down all the plants.
06:36Mr. Shahid Khan Abbasi has raised an important point
06:39that fair bidding was not done at that time.
06:41Some initial plants were put up,
06:43because obviously there was an energy crisis.
06:45But after that, the way these agreements were made,
06:47there was no transparency.
06:49When Mr. Lagari was contacted,
06:51when he was asked about this,
06:53he said that the questions being raised
06:55about IPPs at this time,
06:57the threats that are being expressed,
06:59this is happening under some agenda.
07:01Earlier, there was silence.
07:03Now, why did you remember?
07:05Mr. Lagari raised this question.
07:07Don't speak at your own time.
07:09Don't come on social media
07:11and sit on TV and create a ruckus.
07:13For your own cheap popularity,
07:15there must be some other purpose
07:17for which these people are working.
07:19But we are better reformists than them.
07:48That is why he has said that
07:50this should be reviewed.
07:52Because people pay taxes.
07:54And the unit can be reduced.
07:56That is, this whole process
07:58can be reviewed again.
08:00So, he agrees that there are issues
08:02of capacity payment.
08:04In this, there is a problem of distribution,
08:06electricity bill collection.
08:08But why is he identifying this
08:10and doing it on Twitter?
08:12Talk to each other.
08:14If you want to do reforms,
08:16people are very angry there.
08:18Maybe people will tolerate it again
08:20in the summer.
08:22But when the tariff rate will increase,
08:24capacity payments will increase.
08:26And people may not have money
08:28to eat in their homes.
08:30And all their money will go
08:32to the electricity bill.
08:34So, we see a worrying situation
08:36in the future bill.
08:38Dr. Gauhar Ijaz is with us.
08:40He has been a former minister.
08:42Thank you very much, Gauhar.
08:44How many percent of companies
08:46are being paid
08:48even though they operate
08:50at a low capacity?
08:52Just to get the record straight,
08:54the data that you have shared,
08:56the data that you have accumulated,
08:58where did you jot it down from?
09:00How did you do the analysis?
09:02Please tell us about it.
09:04In the name of God, the Most Merciful, the Most Compassionate.
09:06Thank you, Maria.
09:08You told the people very well
09:10what capacity payment is.
09:12Secondly, you told us
09:14how much the people are suffering
09:16because of the electricity bill.
09:18Thirdly, you told us
09:20that Mr. Shahid Khan Abbasi
09:22himself said that we should have
09:24put up a plant.
09:26We should have made it easier for some people.
09:28But after that, we should have
09:30done the bidding.
09:32And you also told us
09:34about Mr. Obais Laghari
09:36that this is definitely an agenda
09:38under which questions are being raised today.
09:40I will give my point of view
09:42one by one on capacity payment.
09:44On 1st July,
09:46the entire industry
09:48came to me
09:50and said that
09:52we had a cross-subsidy
09:54of Rs. 240 billion.
09:56The domestic consumers
09:58that we were giving
10:00from our bills,
10:02the SIFC decided,
10:04the previous caretaker cabinet,
10:06and the government has agreed
10:08that they will end the cross-subsidy.
10:10And by ending the cross-subsidy,
10:12the industry's tariff
10:14was 9 cents in SIFC.
10:16But
10:18even today, it will be 16 cents.
10:20For the past
10:228-9 months,
10:24I worked for the government
10:26whether it was industry, commerce,
10:28or investment.
10:30And whatever was my responsibility,
10:32I worked for the country knowingly or unknowingly.
10:34And this year, your export of 3.5 billion dollars
10:36and I repeatedly said in every cabinet
10:38that Pakistan's manufacturing
10:40cannot run until
10:42your electricity rates are correct.
10:44The electricity rate in the entire region is 9 cents.
10:46Why is it 16 cents?
10:48And I investigated all that and found out
10:50which country subsidizes
10:52other consumers.
10:54You don't have to subsidize the industry.
10:56If you have to subsidize any sector,
10:58the government should subsidize it from its budget.
11:00That is why tax is given and it has been agreed.
11:02And that point should be taken.
11:04I looked at the things in front of me and I saw
11:06that 7 rupees 13 paise is the tariff again.
11:08And I started reading the reports.
11:10So as I read the reports,
11:12I said this sentence that
11:14I was not surprised.
11:16I kept crying.
11:18What is happening?
11:20I took out 1.95 trillion rupees this morning
11:22and gave it to you that the payment has been made.
11:24Bill of 160 billion rupees is with NEPRA.
11:26More payments will be made.
11:28NEPRA has calculated
11:302.11 trillion rupees.
11:32We have received bills for which
11:34we will pay.
11:36Mr. Vaislagari says that
11:38our capacity is only 18 rupees.
11:40He is forgetting that apart from IPP,
11:42we also have Heidel.
11:44Apart from IPP,
11:46we also have old Gencos.
11:48Apart from IPP,
11:50we also have old capacity.
11:52I am just saying that
11:54the cost of the units
11:56that are being generated by IPP
11:58has become 24 rupees per unit.
12:00Apart from this,
12:02Heidel is not IPP.
12:04Apart from this,
12:06Gencos or old plants are not IPP.
12:08You are saying 18 rupees
12:10for both of them.
12:12I am just talking about IPP
12:14which is 23,400 megawatts.
12:16We are burdened with
12:18old things.
12:20I have shared data
12:22of only three plants.
12:24I said that
12:26after running one plant
12:28on average,
12:30you have given
12:3237 billion rupees to each plant.
12:34I am saying again that
12:36we are talking about bills of 37,000 rupees
12:38on which people are burdened.
12:4037,000 crores have been given to three plants
12:42which did not even run 15 percent.
12:44If we say that
12:46this is our IPP agreement
12:48and under this IPP agreement
12:50whether it runs or not,
12:52we have to pay money.
12:54Who has made that agreement?
12:56The government has made it.
12:58One private sector has made it.
13:00My question is that
13:02what is the government saying
13:04about the 52 percent IPP
13:06which has been put today?
13:08If I try to run
13:10my plants which are not running
13:12or if I tell them
13:14that I will give you
13:16capacity payment when you make electricity,
13:18will the investor confidence shatter?
13:20Will the investor confidence shatter
13:22against the government
13:24What are they saying?
13:26Number two, they are saying that
13:28this contract cannot be revised
13:30and it is on take-out.
13:3252 percent is owned by the government.
13:34Give money to whoever makes electricity.
13:36Out of this 37,000 crores,
13:3822,000 crores are owned by the government
13:40and out of these three plants,
13:42there are two plants.
13:44Out of this 2.13 trillion,
13:4652 percent is owned by the government.
13:4828 percent is owned by the private sector.
13:5020 percent is owned by
13:52foreign investors.
14:22And you have created an exchange,
14:24a power exchange.
14:26There should not be a single buyer.
14:28In these part-purchase agreements,
14:30the government should start
14:32in its own part-purchase agreement
14:34that they will give the money
14:36to whoever makes electricity.
14:38You see, the capacity I am talking about
14:40and I am saying it is Rs. 24,
14:42it should be Rs. 8.
14:44There are rules of the whole world.
14:462.9 cents.
14:48There are rules of the whole world
14:50There are rules of the whole world.
14:52There are rules of the whole world.
14:54There are rules of the whole world.
14:56There are rules of the whole world.
14:58There are rules of the whole world.
15:00There are rules of the whole world.
15:02There are rules of the whole world.
15:04There are rules of the whole world.
15:06There are rules of the whole world.
15:08There are rules of the whole world.
15:10There are rules of the whole world.
15:12There are rules of the whole world.
15:14There are rules of the whole world.
15:16There are rules of the whole world.
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