ISLAMABAD: The government has implemented the controversial decision of Nepra to benefit sugar mill owners.
The government released the first tranche of Rs 8.2 billion for imported fuel to 8 IPPs owned by 5 sugar mill owners, while these IPPs have used sugarcane by-products in their plants instead of imported fuel. 20 billion to be paid to power plants, Nepra allowed these payments despite objections from the Central Power Purchase Agency and the caretaker government.
At a time when the government is forcing IPPs to reduce their costs, NEPRA’s controversial decision to reward IPPs generating sugarcane power is being implemented at a cost to consumers. Sources said CPPA-G had paid Rs 8.2 billion in the first phase to five power plants in August, and the agency on Thursday requested Nepra to recover the amount as part of the August fuel price adjustment. .
According to the documents, in the first phase, the government has given Rs 840.3 million to Chinar Energy Limited, Rs 1.48 billion to Chiniot Power Limited, Rs 1.42 billion to Hamza Sugar Mills, Rs 4.1 billion to two units of JDW, and Rs 399.3 billion to Rahim Yar Khan Mills. million has been released, while no money has been given to Mueez and Thai Industries in the first phase, these payments have been made as fuel costs, based on imported coal, but these power plants count. People use
Despite this, payments are being made to them on account of imported coal, the PML-N government of 2013-18 had linked the payment of sugarcane pulp electricity with imported fuel, according to the documents, the caretaker government has been making payments since October 2018. and opposed linking them to imported coal, but NEPRA ordered the implementation of the policy. Caretaker Energy Minister Muhammad Ali also opposed the FCC’s 5 percent annual increase from October 2022 without taking into account the market price of sugarcane. Who was
