The agreements include the Tariff Differential Subsidy Agreement (TDA) and Power Purchase Agency Agreement (PPAA)
The Federal government and Karachi Electric (KE) signed various agreements, aimed at ensuring energy security for Karachi.
The agreements were signed at the Energy Division through representative bodies in the presence of Muhammad Ali, Minister of Energy, Power and Petroleum, and Dr Shamshad Akhtar, Minister of Finance while KE was represented by CEO, Moonis Alvi and CFO, Muhammad Aamir Ghaziani.
These agreements address longstanding disputes between the government and KE, particularly in formalizing and securing a stable power supply from the National Grid to Karachi, up to the interconnection capacity. The Interconnection Agreement (ICA) is expected to be signed after approval from NEPRA.
Resolving these legacy matters is crucial for both Karachi’s energy security and the sustainability of KE as a company.
The firm supply of energy from the National Grid is anticipated to provide affordable power to KE customers. The signing of a Mediation Agreement (MA) is also essential for reconciling legacy contentions on payables and receivables between KE and government entities.
Expressing his gratitude at the occasion, CEO KE Moonis Alvi said, “Today is a momentous occasion for us, representing a paradigm shift in the energy landscape as well”.
Following recent approval by the Economic Coordination Committee (ECC) chaired by Dr Shamshad Akhtar, the summary had been ratified by the Cabinet also and was developed on the recommendations put forward by the Prime Minister’s task force on Energy that was chaired by Shahid Khaqan Abbasi.
