Business Recorder editorial "A much-needed forensic audit of IPPs" Nov. 29, 2020 is a timely reminder to the government as to their responsibility of meeting the challenge of "rising energy circular debt" which presently seems beyond the existing resources in the present scenario due to seemingly intransigent attitude of IPPs who are accused of ensuring one-sided agreements with the then government in power and with sovereign guarantees which is ensuring that no reasonable solution is likely in the near future and in the meanwhile, of course with ever-increasing circular debt!
A real forensic audit will reveal IPPs' working over the years and most likely create avenues for settlement in a "balanced" way.
It is true that the "problems" related to IPPs will not go away till the government orders a forensic audit of complete supply chain of the power sector. This audit will, hopefully, reveal the "inefficient" working of IPPs and the heavy coast being borne by the energy sector, with ballooning energy circular debt.
Forensic Audit must now be done on real urgent basis as just the energy circular debt is enough to completely derail the economy.
All thermal power plants have major cost element covering fuel coasts and that is why thermal efficiency plays a vital role in cost of produced power. This forum (Business Recorder Editor's mail) has earlier included many letter on this issue and yet, we have never seen a response from IPPs which would confirm either the efficiency or the heat rate (and thus the fuel cost of producing power). Thus, the forensic audit would reveal the reality of producing economic power and thus confirm efficient operation of each IPP, or otherwise! That might "force" the IPPs to accept their failures and change their present attitude.
Hopefully, we will soon see some positive role of the Regular to ensure much-needed forensic audit of each IPP.
Engr. Ainul Abedin (Karachi)
Copyright Business Recorder, 2020
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