Official data show that Pakistan’s electricity consumers paid around Rs13.397 trillion to Independent Power Producers (IPPs) over the past five years. The figures highlight the large amount collected through electricity bills and paid to power companies under the country’s current power system.
Out of the total amount, about Rs7.275 trillion was paid for the electricity that was actually supplied to the national grid. The remaining amount included capacity payments, which are made to many power plants for keeping their facilities available, even if they do not produce electricity.
Under Pakistan’s capacity payment system, several IPPs receive guaranteed payments based on agreements that require their plants to remain ready for use. These payments are made regardless of whether electricity is generated.
According to the available data, nearly 70% of the money collected through electricity bills is transferred to IPPs, making capacity payments a significant part of consumers’ electricity costs.
The data also indicate that the cost of generating electricity has decreased in recent years. However, capacity payments have continued to increase, limiting the impact of lower generation costs on consumer electricity bills.
As a result, many households and businesses continue to face high electricity expenses despite improvements in production costs.
The figures have renewed discussion about the structure of Pakistan’s power sector and the financial impact of long-term agreements with power producers.
Experts believe that reviewing the system and improving efficiency could help reduce the burden on electricity consumers in the future. The data underline the importance of sustainable reforms to ensure a more affordable and efficient power sector for both households and businesses.
