ISLAMABAD: The government had paid Rs 473 billion subsidy to power sector during last year despite economic crunch said the Federal Minister for Energy Omar Ayub on Thursday.
The PTI government inherited capacity payments from PML-N government, the Federal Minister For Energy said.
He further added
agreements signed by the PML-N government with power sector were based on appalling intentions and corrupt practices. He gave his statement while addressing a press conference accompanied by Minster for Planning and Development Asad Umer and Special Assistant to Prime Minister for Power Tabish Gohar.
Furthermore, Omar Ayub added that because of these agreements, the increase in electricity tariff was Rs 2.18 but the present government had decided to increase the rates by Rs 1.95 in per unit.
While quoting capacity payments, he added that the annual capacity payments to IPPs were Rs185 billion in 2013, Rs 468 billion in 2018, Rs 642 billion in 2019, Rs 860 billion in 2020 and would reach Rs 1455 billion in 2023. “These are the land mines, I am talking about,” he said.
Speaking on the occasion, Special Assistant to Prime Minister on Power, Tabish Gohar said the government had taken number of initiatives to bring reduction in circular debt.
He said due to the initiatives of the present government Rs 1 to Rs 2 per unit would be reduced in prices of electricity in upcoming years adding that government had made agreements with power sectors as per law and regulations.