Is IPPs have destroyed country's economy? - Maria Memon's Important Report - video Dailymotion

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00:00If your electricity bill has increased so much that more than the rent of your house,

00:05your electricity bill comes, then do watch this program, this segment.

00:08The electricity bills in all our homes, their prices are talking to the skies.

00:13The money that is going out of our pockets, who is it going to?

00:17In today's segment, we will talk to that person.

00:19Today's news is that how IPPs are being given billions of rupees in the name of capacity payment,

00:26while many of the IPPs are not generating electricity.

00:30And this was claimed by the former Minister of Energy, Gauhar Aijaz, who tweeted today.

00:34And in that tweet, he said that due to government IPPs agreements,

00:38some power plants are buying electricity at a rate of Rs 750 per unit,

00:43while coal power plants are buying electricity at a rate of Rs 200 per unit,

00:47while air and solar are buying electricity at a rate of Rs 50 per unit.

00:52These most expensive IPPs have been given Rs 1.95 trillion.

00:58Government is giving Rs 140 billion to one plant at a rate of 15% load factor,

01:03Rs 120 billion to the second plant at a rate of 17% load factor,

01:07and Rs 100 billion to the third plant at a rate of 22% load factor,

01:11in the name of capacity payment.

01:14This amounts to Rs 370 billion for just three plants.

01:18We are being sold electricity at a rate of Rs 60 per unit.

01:21This is due to corrupt contracts, mismanagement, and incompetence.

01:25Everyone should stand up against these agreements to save their country,

01:28which are benefiting only 40 families.

01:30Maybe many of you don't know what capacity payment is,

01:34so let me explain it to you in a simple language.

01:37To end the increasing demand for electricity and load shedding in the country,

01:41different governments have made agreements with IPPs in the past.

01:44Now, despite not generating electricity for these private companies,

01:49Rs 185 billion has been paid in the name of capacity payment.

01:53Just take a look at the increase in capacity payment in the past 10 years.

01:58Here are the figures of 2013, which were revealed by the Prime Minister himself.

02:02Rs 185 billion was paid in the name of capacity payment in 2013,

02:08and according to our estimates,

02:11this amount has increased to Rs 2010 billion in 2024.

02:16Just look at the exponential rise in this amount,

02:19and it will continue to increase next year.

02:23In these 10 years, Rs 1800 billion has already increased.

02:28How much more will it increase?

02:31This is a very important question mark.

02:33When there is capacity payment,

02:35it is a very fancy word,

02:38but conceptually, how does it affect your bill?

02:41Let me explain this to you in a simple language.

02:43In the electricity bill, the fee unit capacity payment is fixed at Rs 18.39.

02:48Due to the lack of electricity supply, power plants are shut down,

02:52but the electricity bill continues to pay for it.

02:55People's national grid station, in exchange for solar,

02:58continues to pay for it with the bills of other people's electricity bills.

03:02Now, who has the ownership of the IPPs in Pakistan over the period of time?

03:07This is also a very interesting breakdown.

03:09Let's talk about how many IPP plants are being paid,

03:14but they are not generating electricity.

03:16This is a very interesting fact, and we will share it with you today.

03:20There are 3 such IPP plants,

03:22which are not generating electricity at all,

03:25but they are still paying for the capacity payment.

03:29There are 37 such plants,

03:31which are generating less than 25% electricity,

03:34but they are still being paid in full.

03:37There are 60 such plants,

03:39which are generating a little more than 25% electricity,

03:43but they are still being paid in full.

03:46Let me show you a small chart.

03:48These are the 3 companies,

03:50which are not generating electricity at all,

03:54but they are still being paid in full.

03:57We will talk about this with the data shared by Mr. Gauhar-e-Jaas.

04:02But who owns the IPPs in Pakistan?

04:05This is a common question.

04:07If there are such expensive contracts,

04:09can't we renegotiate them?

04:11Are there companies from other countries?

04:13Are there any watertight contracts,

04:15which can be challenged in the international court?

04:17Why are we not renegotiating them?

04:19Why are we being paid?

04:20Let me show you this breakdown.

04:2228% of the IPPs in Pakistan,

04:25are owned by the private sector of Pakistan.

04:3052% of the IPPs are owned by the government.

04:3520% of the IPPs are owned by the Chinese.

04:39If we look at the breakdown,

04:4180% of the IPPs are owned by the Pakistanis.

04:46The Pakistanis own them, run them,

04:48and collect their capacity payment.

04:51Mr. Shahid Khan Abbasi,

04:53the former Prime Minister of Pakistan,

04:55has been in office for some time now.

04:57He was negotiating the capacity payment.

04:59When he was asked,

05:01was the bidding process fair?

05:03Was there transparency?

05:05And why not?

05:07We ensured that the contracts were signed.

05:09He admitted that the bidding process

05:12should have been done,

05:14because these plants are not used in winters.

05:16We should have put the initial IPPs

05:18on upfront tariffs.

05:20Then we would have bid on the tariffs.

05:22We would have defined the plant.

05:24We would have given an efficiency level,

05:26and we would have received market-based bids.

05:2818% rate of return would have been guaranteed.

05:31And we wouldn't have had to make tariffs,

05:33because NEPRA doesn't know the market conditions.

05:35Our per capita consumption of electricity

05:37is still half of that of India.

05:39In winters, for 4-5 months,

05:41your demand doesn't go above Rs. 8000-9000.

05:43You have to shut down all the plants.

05:46Mr. Shahid Khan Abbasi has raised a very important point

05:49that fair bidding was not done at that time.

05:51Some initial plants were put up,

05:53because obviously there was an energy crisis.

05:55There was no transparency in the way

05:57the agreements were made after the crisis.

05:59When the Minister of Environment,

06:01Mr. Laghari, was contacted,

06:03when he was asked about this,

06:05he said that on this occasion,

06:07the questions being raised about IPPs,

06:09the threats that are being expressed,

06:11are happening under some agenda.

06:13Earlier, it was silence.

06:15Now, why did it come to mind?

06:17Mr. Laghari raised this question.

06:19Don't speak in your time.

06:21Don't sit on social media and TV

06:23for your cheap popularity.

06:25There must be some other purpose

06:27for which these people are working.

06:29But we are better reformists than them.

06:32Reforms are not visible at the moment.

06:34Mr. Fajr Asif, who is a very important

06:36minister of the government,

06:38is also close to Mr. Nawaz Sharif and Mr. Shabaz Sharif.

06:40This means that he can have an impact on policy.

06:42But he probably didn't say this in his party.

06:44He had to come to Twitter and say this.

06:46And today he tweeted.

06:48He said that there is definitely a problem

06:50of capacity payment in electricity bills.

06:52In a tariff of Rs. 36.5 per unit,

06:54capacity payment is Rs. 18 per unit.

06:56That's why he said that this should be reviewed.

06:58Because people pay taxes.

07:00And the unit can be reduced.

07:02This means that this whole process

07:04can be reviewed again.

07:06So, he agrees that there are problems

07:08of capacity payment.

07:10There are problems of distribution,

07:12electricity bills.

07:14These are also problems.

07:16But why is he identifying this

07:18and doing it on Twitter?

07:20Why is he doing this?

07:22Talk to each other.

07:24If you want to do reforms,

07:26tell us what reforms are being done.

07:28Because this time, people are very angry

07:30in the summers.

07:32Maybe people will tolerate this again

07:34in the summers.

07:36But after this, when the tariff rate

07:38will increase, capacity payments

07:40will increase.

07:42And people may not even have money

07:44to eat at home.

07:46They may lose all their money

Is IPPs have destroyed country's economy? - Maria Memon's Important Report

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