Pakistan paid a total of Rs13,397 billion to independent power producers (IPPs) over the past five years, a major factor behind the high cost of electricity bills for consumers, according to official data.
The data show that nearly 70 percent of the amount collected from consumers per unit of electricity is transferred to IPPs, making these payments the primary driver of expensive power bills across the country.
Of the total Rs13,397 billion paid to IPPs, Rs7,275 billion was disbursed for actual electricity generation. A significant portion of the remaining amount was paid to IPPs that did not generate any electricity at all, the data reveal.
The report also noted a steady rise in capacity payments despite a continuous decline in the cost of power generation. This trend has kept electricity prices elevated and placed an additional financial burden on consumers.
Officials have not yet announced measures to review or restructure the capacity payment mechanism in light of the latest figures.
