Karachi January 5 2024: K-Electric limited (KE) has entered into Power Purchase Agency Agreement (PPAA) and Tariff Differential Subsidy Agreement (TDSA) with the Government of Pakistan, through its representative bodies., according to company filing to the exchange.
These agreements, along with Interconnection Agreement (ICA), have been approved by Economic Coordination Committee and ratified by the Federal Cabinet. The ICA will be signed once approval is received from 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 some term, and in the backdrop of planned investments of KE in network interconnection capacity, KE will be able to off-take supply upto the interconnection capacity from the national grid, including 1,000 MW of power supply on firm basis.
The TDSA has also been executed for a term of 10 years which shall help streamline the process offering, verification and release of KE’s Tariff differential Subsidy Claims from the Government of Pakistan.
ln 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.
