The Korangi Association of Trade & Industry (KATI) has officially requested the Ministry of Energy to conduct a forensic technical and financial audit of the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G). This urgent call comes in light of concerns regarding the transparency and prudency of CPPA-G’s financial transactions with Independent Power Producers (IPPs).

KATI’s review of recent Fuel Charges Adjustments (FCA) and Quarterly Tariff Adjustments (QTA) has revealed potential gaps in the verification processes used by CPPA-G, raising questions about the accuracy of payments made to IPPs. Specifically, NEPRA’s reliance on data provided by CPPA-G without independent verification has caused concern about the reliability of fuel consumption figures, heat rates, and other operational metrics submitted by IPPs.

The escalating cost of electricity in Pakistan is leaving industries unviable, placing a significant burden on businesses and threatening economic stability. Furthermore, CPPA-G has been rationing payments to IPPs due to a cash shortage. The criteria used to determine this payment distribution are unclear, raising concerns about fairness and increasing the risk of financial corruption. Without a clear and transparent payment process, the risk of discrepancies in how funds are allocated among IPPs becomes a significant issue.

KATI is urging the Ministry to commission an independent audit to ensure that the principles behind payment rationing are fully transparent and that all payments to IPPs are handled fairly and accountable. This audit is essential to protecting the financial integrity of the power sector, restoring public trust, and reducing electricity costs to enable industries to remain competitive.