Ex-PM Shahid Khaqan Abbasi told important facts regarding IPPs agreement

ARY NEWS

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Transcript

00:00Everyone in the country has been talking about IPPs for the past two weeks.

00:06Be it political parties, different pressure groups, or the public.

00:10There is a lot of talk about IPPs everywhere.

00:12Because we have June, July, and August bills in our hands.

00:18They have arrived, and everyone has lost their minds.

00:21Take a look at the case of IPPs.

00:23We have only one demand.

00:24No matter how much electricity we build, we will pay for it.

00:27If we conduct a forensic audit, we will find out the truth.

00:3070% of the cases are IPPs, and both the government and the local authorities are involved.

00:34If we do not have a capacity charges agreement with them,

00:37we will not be able to pay for the bills.

00:39With regards to IPPs,

00:40decide that all the IPPs have been paid for,

00:42and conduct a forensic audit.

00:44The IPPs that have been paid for,

00:47need to be reviewed.

00:50Those that are closed, should not be given a capacity payment.

00:53Those that are open,

00:54should be revised.

00:5652% of the IPPs are owned by the government.

01:00Should we look at those 40 families,

01:02or should we look at the 24 crore people?

01:042,100 billion capacity bills have been collected.

01:09In the coming year,

01:112,800 billion will be collected from you.

01:16It is obvious that the government is feeling pressure.

01:18The Minister of Transport, IAS, Mr. Laghari,

01:20has said on various occasions, on various TV channels,

01:23that these agreements cannot be reviewed.

01:25But what can be done?

01:27How can electricity be generated in different ways?

01:30Listen to what the government is doing on this.

01:32For us, in Pakistan,

01:34an IPP that uses a 5 kilowatt system,

01:39and the contract with it,

01:41holds the same importance as a CPAC or an external one.

01:45So the existing contracts that we have set up,

01:47we will not change them in any way.

01:50There are about 28 plants from 1994 and 2002,

01:54which we have completely dissected and analysed.

01:59The other issue is that

02:00the electricity plants in Pakistan that use imported coal,

02:06the coal produced from Appan,

02:09if we convert it,

02:11the price of two and a half rupees per unit can go up.

02:17The Prime Minister of Pakistan, Mr. Shahbaz Sharif,

02:19says that all these agreements are correct.

02:21The cheapest electricity is being generated

02:23as a result of these IPP agreements.

02:25Listen to this.

02:26In the era of Mian Mohammad Nawaz Sharif,

02:28the load shedding of 20 hours was terminated.

02:32I can say with great fear,

02:33that this credit goes to the government of Mian Nawaz Sharif,

02:36that they have installed the cheapest plants in history.

02:41Shahid Khakan Abbasi is with us,

02:43the former Prime Minister of Pakistan.

02:45Because of the IPP agreements,

02:48there is a lot of tension in the public,

02:49and there is a lot of worry as well.

02:51Bills are coming for all of us.

02:53If the government says that IPP cannot be renegotiated,

02:57nothing can be done about it,

02:58then what can be done?

03:00Is it our fate to give this bill,

03:01that we will give it as long as we have to pay the capacity payment?

03:05Look, I am surprised that

03:09all these people who were talking,

03:11they don't know what the problem is with electricity.

03:14They don't know.

03:16And everyone is talking.

03:18All these faces that you have shown,

03:21if there is a problem with the price of electricity,

03:25then IPP is a small problem.

03:28All these opinions will tell you that the problem is IPP.

03:31What is the percentage of IPP?

03:32Let's break it down.

03:33What percentage of IPP is responsible for it?

03:35Look, it is 18 rupees.

03:37You are getting 18 rupees for IPP, capacity charges.

03:40It is the same all over the world.

03:42You install the capacity, you pay for it,

03:45when you use electricity, you pay for fuel.

03:48Nuclear, hydro,

03:52coal, sorry, solar, wind and gas,

03:57these are renewables,

03:58they don't pay for fuel.

04:01So, all their payments are IPP.

04:04So, today we are paying IPP for 18 rupees per unit.

04:10Out of the 18 rupees, 12 are owned by the government.

04:1612 rupees are for nuclear, hydro,

04:244 plants of the government, RLNG,

04:29solar and wind.

04:32All these make up 12 rupees.

04:36Sometimes it is 11, sometimes it is 12.

04:38So, the rest is 6 rupees.

04:40Out of 6 rupees,

04:423 rupees are for coal.

04:46We extract our coal.

04:49And 3 rupees,

04:513 to 3.5 rupees,

04:53are for the 3 coal plants in China's CPEC.

05:00So, nothing is left behind.

05:02The old plants,

05:04which were installed during Musharraf,

05:06which were installed during Benazir,

05:08the furnace oil,

05:10the remaining 3 to 4 rupees are their payments.

05:12So, the capacity payments,

05:14in which these plants are not generating electricity,

05:16but we are still paying them,

05:18isn't this problematic?

05:20This is how it is in the world.

05:22What is your problem?

05:24Why is this problematic?

05:26It has two problems.

05:28In the beginning,

05:30all these plants were worth 40 rupees.

05:32The last one,

05:34I think it was worth 115 rupees.

05:36Today,

05:38it is worth 285 rupees.

05:40But the government of Tehreek-e-Insaf

05:42probably capped it at 145 rupees.

05:44No, they didn't cap it.

05:46When they renegotiated,

05:48they capped the dollar's value.

05:50Only 2 rupees of capacity payments

05:52have been negotiated.

05:542 out of 18.

05:56I am not satisfied with the renegotiation.

05:58Those few plants,

06:00which were for the furnace oil,

06:02were renegotiated.

06:04In the renegotiation,

06:06the two biggest requirements

06:08that the government didn't follow,

06:10which were 20-25 years,

06:12were also given to them.

06:14Two things were there.

06:16We will pay you on time.

06:18And we,

06:20which is a differential,

06:22because when the government didn't pay them,

06:24they paid less.

06:26When they didn't pay the fuel charges,

06:28they paid more.

06:30The impact of that

06:32comes in a few pennies.

06:34So,

06:36the first thing is to understand

06:38what the issue is.

06:40The issue was created for two reasons.

06:42One, I told you, because of the dollar.

06:44Second,

06:46the electricity that you installed,

06:48you should have

06:50consumed

06:52200 billion units.

06:54Electricity is always installed

06:56on your projected demand.

06:58We were making 90 billion units

07:00in 2013.

07:02That amounted to

07:04140 billion units.

07:06When your economy went down,

07:08instead of going up,

07:10it came down to 110 billion units.

07:12So, per unit, the capacity charge increased.

07:14So, all these things

07:16are linked to your economy.

07:18Otherwise, this IPB was here

07:20last year, the year before that,

07:22the year before that, in 2013,

07:24and in 2019.

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Transcript

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