ISLAMABAD: The Central Power Purchasing Agency (CPPA) notified the Senate Standing Committee on Energy that it had still not received Rs 350 billion from K-Electric.
The Senate Standing Committee on Energy held a meeting in the Parliament House, chaired by Senator Saif Ullah Abro. The additional Secretary of the Power Division, Managing Director of the National Transmission and Despatch Company attended this meeting. Moreover, Chairman National Electric Power Regulatory Authority, Chief Executive Officers/representatives of all DISCOs, and other officials were also present.
While addressing the Senate Committee, Moonis Alvi, CEO of K-Electric (KE), stated that the company presently gets 1000 MW of electricity from the national grid.
The Senate Committee questioned at what rate KE purchases electricity from the national grid. The CPPA officials replied that KE is paying the same price. Because the basket rate of electricity is fixed for all DISCOs.
The Committee raised questions about the details of the K Electric contract. Additionally, ‘the circular debt has not been resolved as yet’. Senator Fida Muhammad claimed that K Electric’s contract with National Grid expired in 2015. Although eight years have been gone, the contract was unable to be renewed, to which the Ministry had no concrete answer.
Moonis Alvi mentioned that a draft interconnection agreement was started on November 10, 2021. Alvi made this statement during a briefing on the status of the power purchase agreement between K-Electric and CPPA. Above all this arrangement will allow National Grid to supply KE with up to 2,050 MW of power.
Moreover, the Committee also asked for a briefing on the problems of Karachi’s electricity consumers.
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Concerning the power outage on January 23, an NTDC representative informed the committee that human error was a factor in the outage.
