Ex-PM Shahid Khaqan Abbasi told important facts regarding IPPs agreement
#SawalYehHai #IPPs #ElectricityBill #ElectricityPriceHike #ElectricityTariff #Electricity #PMShehbazSharif #ShahidKhaqanAbbasi #AsimMunir
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NewsTranscript
00:00Everyone in the country has been talking about IPPs for the past two weeks.
00:06Be it political parties, different pressure groups, or the public.
00:10There is a lot of talk about IPPs everywhere.
00:12Because we have June, July, and August bills in our hands.
00:18They have arrived, and everyone has lost their minds.
00:21Take a look at the case of IPPs.
00:23We have only one demand.
00:24No matter how much electricity we build, we will pay for it.
00:27If we conduct a forensic audit, we will find out the truth.
00:3070% of the cases are IPPs, and both the government and the local authorities are involved.
00:34If we do not have a capacity charges agreement with them,
00:37we will not be able to pay for the bills.
00:39With regards to IPPs,
00:40decide that all the IPPs have been paid for,
00:42and conduct a forensic audit.
00:44The IPPs that have been paid for,
00:47need to be reviewed.
00:50Those that are closed, should not be given a capacity payment.
00:53Those that are open,
00:54should be revised.
00:5652% of the IPPs are owned by the government.
01:00Should we look at those 40 families,
01:02or should we look at the 24 crore people?
01:042,100 billion capacity bills have been collected.
01:09In the coming year,
01:112,800 billion will be collected from you.
01:16It is obvious that the government is feeling pressure.
01:18The Minister of Transport, IAS, Mr. Laghari,
01:20has said on various occasions, on various TV channels,
01:23that these agreements cannot be reviewed.
01:25But what can be done?
01:27How can electricity be generated in different ways?
01:30Listen to what the government is doing on this.
01:32For us, in Pakistan,
01:34an IPP that uses a 5 kilowatt system,
01:39and the contract with it,
01:41holds the same importance as a CPAC or an external one.
01:45So the existing contracts that we have set up,
01:47we will not change them in any way.
01:50There are about 28 plants from 1994 and 2002,
01:54which we have completely dissected and analysed.
01:59The other issue is that
02:00the electricity plants in Pakistan that use imported coal,
02:06the coal produced from Appan,
02:09if we convert it,
02:11the price of two and a half rupees per unit can go up.
02:17The Prime Minister of Pakistan, Mr. Shahbaz Sharif,
02:19says that all these agreements are correct.
02:21The cheapest electricity is being generated
02:23as a result of these IPP agreements.
02:25Listen to this.
02:26In the era of Mian Mohammad Nawaz Sharif,
02:28the load shedding of 20 hours was terminated.
02:32I can say with great fear,
02:33that this credit goes to the government of Mian Nawaz Sharif,
02:36that they have installed the cheapest plants in history.
02:41Shahid Khakan Abbasi is with us,
02:43the former Prime Minister of Pakistan.
02:45Because of the IPP agreements,
02:48there is a lot of tension in the public,
02:49and there is a lot of worry as well.
02:51Bills are coming for all of us.
02:53If the government says that IPP cannot be renegotiated,
02:57nothing can be done about it,
02:58then what can be done?
03:00Is it our fate to give this bill,
03:01that we will give it as long as we have to pay the capacity payment?
03:05Look, I am surprised that
03:09all these people who were talking,
03:11they don't know what the problem is with electricity.
03:14They don't know.
03:16And everyone is talking.
03:18All these faces that you have shown,
03:21if there is a problem with the price of electricity,
03:25then IPP is a small problem.
03:28All these opinions will tell you that the problem is IPP.
03:31What is the percentage of IPP?
03:32Let's break it down.
03:33What percentage of IPP is responsible for it?
03:35Look, it is 18 rupees.
03:37You are getting 18 rupees for IPP, capacity charges.
03:40It is the same all over the world.
03:42You install the capacity, you pay for it,
03:45when you use electricity, you pay for fuel.
03:48Nuclear, hydro,
03:52coal, sorry, solar, wind and gas,
03:57these are renewables,
03:58they don't pay for fuel.
04:01So, all their payments are IPP.
04:04So, today we are paying IPP for 18 rupees per unit.
04:10Out of the 18 rupees, 12 are owned by the government.
04:1612 rupees are for nuclear, hydro,
04:244 plants of the government, RLNG,
04:29solar and wind.
04:32All these make up 12 rupees.
04:36Sometimes it is 11, sometimes it is 12.
04:38So, the rest is 6 rupees.
04:40Out of 6 rupees,
04:423 rupees are for coal.
04:46We extract our coal.
04:49And 3 rupees,
04:513 to 3.5 rupees,
04:53are for the 3 coal plants in China's CPEC.
05:00So, nothing is left behind.
05:02The old plants,
05:04which were installed during Musharraf,
05:06which were installed during Benazir,
05:08the furnace oil,
05:10the remaining 3 to 4 rupees are their payments.
05:12So, the capacity payments,
05:14in which these plants are not generating electricity,
05:16but we are still paying them,
05:18isn't this problematic?
05:20This is how it is in the world.
05:22What is your problem?
05:24Why is this problematic?
05:26It has two problems.
05:28In the beginning,
05:30all these plants were worth 40 rupees.
05:32The last one,
05:34I think it was worth 115 rupees.
05:36Today,
05:38it is worth 285 rupees.
05:40But the government of Tehreek-e-Insaf
05:42probably capped it at 145 rupees.
05:44No, they didn't cap it.
05:46When they renegotiated,
05:48they capped the dollar's value.
05:50Only 2 rupees of capacity payments
05:52have been negotiated.
05:542 out of 18.
05:56I am not satisfied with the renegotiation.
05:58Those few plants,
06:00which were for the furnace oil,
06:02were renegotiated.
06:04In the renegotiation,
06:06the two biggest requirements
06:08that the government didn't follow,
06:10which were 20-25 years,
06:12were also given to them.
06:14Two things were there.
06:16We will pay you on time.
06:18And we,
06:20which is a differential,
06:22because when the government didn't pay them,
06:24they paid less.
06:26When they didn't pay the fuel charges,
06:28they paid more.
06:30The impact of that
06:32comes in a few pennies.
06:34So,
06:36the first thing is to understand
06:38what the issue is.
06:40The issue was created for two reasons.
06:42One, I told you, because of the dollar.
06:44Second,
06:46the electricity that you installed,
06:48you should have
06:50consumed
06:52200 billion units.
06:54Electricity is always installed
06:56on your projected demand.
06:58We were making 90 billion units
07:00in 2013.
07:02That amounted to
07:04140 billion units.
07:06When your economy went down,
07:08instead of going up,
07:10it came down to 110 billion units.
07:12So, per unit, the capacity charge increased.
07:14So, all these things
07:16are linked to your economy.
07:18Otherwise, this IPB was here
07:20last year, the year before that,
07:22the year before that, in 2013,
07:24and in 2019.