The Ministry of Energy has provided information on the massive capacity payments made to the power generation companies over the past two fiscal years, just days after the government approved “settlement agreements” with a number of independent power producers (IPPs) in an effort to lower the nation’s exorbitant electricity rates.
The federal government has agreements with 180 IPPs, according to the Ministry of Energy, which told the upper house that Rs487 billion was paid in FY23 and an astounding Rs923 billion in FY24 to a total of 36 IPPs in terms of capacity payments.
The information was provided Thursday during a Senate question-and-answer period.
