Past governments set up expensive power plants: Senate told

Minister of State for Parliamentary Affairs Ali Muhammad Khan on Monday informed the Senate that the previous governments set up expensive power plants based on imported fuel including coal, furnace oil and LNG and did not pay any attention to generate cheap hydel electricity.

Winding up discussion on a motion moved by Senator Mushaq Ahmed that the House may discuss the situation arising out of increase in electricity prices of Rupees 4.74 per unit by NEPRA, he said the power regulator determined tariff under a set mechanism. Under the said mechanism, the power plants were run, he added.

He said unfortunately, over 60 per cent electricity was being generated through imported costly fuel and in past now mega dam or hydel project was initiated in the country. Maximum attention was given to generation while no investment was made in the transmission system, he added.

The Minister said today we have around 39,000 MW installed capacity against our peak demand of 27000 MW. We have to pay to the power plants under capacity payment, he added.

He said the government launched various mega dam projects including Mohmand. He expressed the hope that fuel cost adjustment issue would end in next few months.