PD finalises new draft PPA with KE along with disputes
ISLAMABAD: The Power Division has reportedly finalised new draft Power Purchase Agreement (PPA) with Karachi Electric (KE) along with disputes, to be submitted first to the Economic Coordination Committee (ECC) and then Cabinet for approval, well-informed sources told Business Recorder. Presently, KE is drawing over 1,100 MW electricity from the national grid, sans any formal agreement. The PPA between KE and National Transmission and Desptach Company (NTDC) expired in 2015, after which power is supplied to KE on transitional arrangements. According to the Power Division, Rs 213 billion is receivable from KE as on June 30, 2021 due to subsidy dispute between the power utility and Finance Division. On May 5, 2021 , the issue of new PPA came under discussion and the government sent a message to KE management through media that it will give a last chance to resolve disputes with government entities otherwise it will consider taking over KE. The government argued that it was already supplying over 1300 MW electricity to KE but being paid only for 650 MW of electricity.
PD finalises new draft PPA with KE along with disputes
ISLAMABAD: The Power Division has reportedly finalised new draft Power Purchase Agreement (PPA) with Karachi Electric (KE) along with disputes, to be submitted first to the Economic Coordination Committee (ECC) and then Cabinet for approval, well-informed sources told Business Recorder. Presently, KE is drawing over 1,100 MW electricity from the national grid, sans any formal agreement. The PPA between KE and National Transmission and Desptach Company (NTDC) expired in 2015, after which power is supplied to KE on transitional arrangements. According to the Power Division, Rs 213 billion is receivable from KE as on June 30, 2021 due to subsidy dispute between the power utility and Finance Division. On May 5, 2021 , the issue of new PPA came under discussion and the government sent a message to KE management through media that it will give a last chance to resolve disputes with government entities otherwise it will consider taking over KE. The government argued that it was already supplying over 1300 MW electricity to KE but being paid only for 650 MW of electricity.