January 05, 2024 (MLN): K-Electric Limited (KE) has entered into a Power Purchase Agency Agreement (PPAA) and Tariff Differential Subsidy Agreement (TDSA) with the federal government, through its representative bodies, the company’s filing on PSX revealed today.
These agreements, along with the Interconnection Agreement (ICA), have been approved by the Economic Coordination Committee and ratified by the Federal Cabinet.
The ICA will be signed once approval is received from the National Electric Power Regulatory Authority (NEPRA).
The PPAA has been executed for a term of 10 years. This agreement will regularize the existing arrangement for the supply of power to KE from the national grid. Further, with the signing of ICA for the same term.
In the backdrop of planned investments of KE in network interconnection capacity, KE will be able to off-take supply up to the interconnection capacity from the national grid, including 1,000 MW of power supply on firm basis.
The TDSA has also been executed fora term of 10 years which shall help streamline the process of filing, verification and release of KE’s Tariff Differential Subsidy Claims from the Government of Pakistan.
In addition to the above agreements, a Mediation Agreement has also been executed between KE and Government Parties for settlement of disputes around historic receivables and payables.
Taking the X account, Moonis Alvi, CEO of KE stated, “Humbled to announce today is a landmark day for KHI as we sign agreements with GoP to secure firm electricity supply to Karachi up to interconnection capacity,”
Humbled to announce today is a landmark day for KHI as we sign agreements with GoP to secure firm electricity supply to Karachi up to interconnection capacity. This is a huge stride in addressing the energy trilemma for customers, also reducing subsidy burden on Govt. (1/2) pic.twitter.com/POvkVR4AWG
— Moonis Alvi (@alvimoonis) January 5, 2024
This is a huge stride in addressing the energy trilemma for customers, also reducing the subsidy burden on the government, he added.
He also appreciated the critical role played by critical role played by the Caretaker Prime Minister Anwar-ul-haq Kakar, Ministry of Energy, Finance Division, Caretaker Energy Minister Muhammad Ali, Finance Minister Dr Shamshad Akhtar and Shahid Khaqan Abbasi.
Critical role played by @PakPMO @MoWP15 & endorsed by @Financegovpk credit to @magmmz & @1sakhtar for taking this journey, initiated by @SKhaqanAbbasi Chair of PM’s Energy taskforce, to fruitful conclusion.Heartening to see business centric vision in Pk spearheaded by SIFC (2/2) pic.twitter.com/ha39pQciFw
— Moonis Alvi (@alvimoonis) January 5, 2024
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Posted on: 2024-01-05T14:28:33+05:00
