Showing posts with label Power Sector in Pakistan. Show all posts
Showing posts with label Power Sector in Pakistan. Show all posts

Saturday, July 20, 2024

What is the reason for expensive electricity in Pakistan?


WAPDA was responsible for all the problems of electricity in Pakistan, all the contracts, and all the affairs, and it carried out this responsibility till 1992. After that, contracts were signed with IPP, in which there was an agreement that as much electricity as they would generate, they would We will buy and guarantee that the government and the independent power producers in Pakistan started using coal and furnace oil to generate electricity.
 Independent power producers started using oil and the lowest quality oil used for burning was burnt to generate electricity in Pakistan and caused huge damage to the environment which will be affected by future generations with modern technology. The use of solar energy and the use of solar technology was very appropriate at that time. Pakistan is an indebted country and is on the brink of collapse due to independent power producers. The corruption that has been exposed in the power sector is chief among the contracts entered into with independent power producers that include an agreement to pay in dollars. Over time, the value of the rupee has decreased, the dollar has become more expensive and the people have become devastated. Electricity has not been generated from renewable energy sources in Pakistan, the environment has deteriorated, the economy has also deteriorated, the financial condition of the people has also deteriorated, and this is the main reason for the increase in inflation. Pakistan had water reservoirs and resources from which we could generate energy without damaging the environment, we can meet our needs by getting energy from wind and sun, but in the past, those agreements were made for the commission. which are seriously affecting the common citizen. In the past, exemptions and reliefs were given to independent power producers in income tax, besides, independent power producers need to prepare for orders, and financial reports need to be prepared about them. They supply only 25% of the electricity that was supposed to be generated as per the contracts while receiving 100% of the amount as capacity charges and they are paid on time which is a deep mystery. The people have understood this to some extent and their understanding will surely make the rulers realize in the coming days. The government of Pakistan has given billions of rupees more to the independent power producers in the name of oil and what they have given according to the agreement. are more and what has been paid in the form of capacity charges cannot be said to be less than a cruelty and the game played with the public is no longer tolerated by the public. They have been rewarded with huge benefits in the past which have destroyed the country's economy and the plants installed to generate electricity. Some recovered their cost in just one year and after that made billions of rupees in profit and paid a commission out of it. Independent Power Producers have earned legitimate as well as illegitimate profits and this is equivalent to giving a shock to the economy of Pakistan which it could not bear today the image of Pakistan in the international world is that of the most backward and the poorest country that has not signed the agreement. In the spirit of this, whether the government of Pakistan buys electricity or not, in the next two years, it will give thousands of billions of rupees to power plants in the form of capacity payment, which is an injustice. and the production capacity is 44,000 megawatts, but despite this, load shedding is taking place and despite not generating electricity, capacity charges are being collected. In 2019, the Senate Standing Committee on Power compiled a report and research, which has just been acted upon, which contains all the facts that private sector power plants and their contracts have become a burden and third world. The tactics used by the rulers of the countries to get the commission are the same tactics we see here. It is also a violation of international laws and payment in dollars is a violation of international laws. These agreements are for the next 40 years. which should be stopped immediately environment friendly power generation plants are the urgent need of the hour and power generation other than solar wind and hydro should be banned in Pakistan as it affects the environment and environmental pollution is increasing. Nepra in Pakistan showed negligence and did not perform its duties properly and benefited the Independent Power Producers to the tune of billions of rupees which they illegally raised under the wrong contract legally some cases have also come forward that Independent Power Producers took the Government of Pakistan to court and the verdict was against the Government of Pakistan. Capacity charges are being charged to independent power producers in electricity bills, which is an injustice. which has put Pakistan's economy on hold and due to the expensive dollar, the load is continuously increasing. In Pakistan, the electricity project costing one and a half billion rupees is being costed in Bangladesh at half the cost. Wind power generation. It's happening in four cents around the world while in Pakistan it is costing 14 cents.

SENATE OF PAKISTAN

Under the constitution of Pakistan, there is a two-member parliament, one is the National Assembly and the other is the Senate of Pakistan.T...