Fresh details presented in the Senate have exposed a wide IPPs electricity generation cost gap compared with WAPDA’s dams. According to the documents, WAPDA dams produced power at as little as Rs. 2.70 per unit. Meanwhile, some private independent power producers charged more than Rs. 34 per unit for the same period.

The government paid Rs. 186 billion to WAPDA for 34.5 billion units of electricity during the period under review. However, private IPPs received Rs. 1.04 trillion for only 49.8 billion units, a far smaller volume at a much higher cost. Additionally, more than Rs. 1.3 trillion was paid to IPPs in capacity charges during the current fiscal year alone.

Tarbela Hydel Power Project emerged as the cheapest source among all the plants listed, generating electricity at Rs. 2.70 per unit. Mangla Hydel Power Project followed closely, producing power at Rs. 3.75 per unit. The average cost across all dams therefore stood at Rs. 5.39 per unit, far below most thermal alternatives.

Chashma Nuclear Power Plant generated electricity at Rs. 6.76 per unit, positioning it as a relatively affordable option outside the hydel network. Domestic Thar coal, by contrast, was supplied at Rs. 19.03 per unit. Still, this figure remained well below the rates charged by plants relying on imported fuel.

The cost gap widened further at facilities using imported coal. Sahiwal Coal Power Plant generated electricity at Rs. 34.17 per unit, the highest rate among the listed plants. Port Qasim’s power plant was not far behind, with costs reaching Rs. 32.16 per unit.

These figures highlight how heavily Pakistan’s power sector depends on costly imported fuel sources. Furthermore, the disparity raises fresh questions about long-term energy planning and the structure of existing capacity agreements. Instead of relying so heavily on expensive imported coal, analysts suggest greater investment in low-cost hydel and nuclear generation could ease pressure on consumers.

Finally, the Senate documents underline the scale of capacity payments flowing to IPPs regardless of actual power output. Lawmakers are now expected to scrutinise these contracts more closely in upcoming sessions, given the sharp contrast between dam-based and IPP-based generation costs across the country.