Capacity payments to idle power plants are a major driver of Pakistan's electricity tariff hikes. These payments are primarily owed to plants built under which framework?
Q1. Capacity payments to idle power plants are a major driver of Pakistan's electricity tariff hikes. These payments are primarily owed to plants built under which framework?
Answer: CPEC energy projects and IPPs under take-or-pay contracts
Explanation: Capacity payments arise from take-or-pay contracts signed with IPPs and CPEC energy projects, under which the government must pay for installed capacity regardless of whether the electricity is actually dispatched.