KARACHI: K-Electric Limited (KE) has entered into a Power Purchase Agency Agreement (PPAA) and Tarif Differential Subsidy Agreement (TDSA) with the Government of Pakistan, through its representative bodies. 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, and in the backdrop of planned investments in KE’s network interconnection capacity, KE will be able to of-take supply up to the interconnection capacity from the national grid, including 1,000 MW of power supply on a firm basis.
The TDSA has also been executed for a term of 10 years which shall help streamline the process of filing, verification and release of KEs’ Tarif 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 the settlement of disputes around historic receivables and payables.
