Government to sign new PPA with K-Electric

The Federal Government is about to sign a new Power Purchase Agreement (PPA) with Karachi Electric (KE). Additional Secretary Power Division/ CEO CPPA-G Waseem Mukhtar disclosed this at a meeting of Senate Standing Committee on Power presided over by Senator SaifUllah Abro.

Currently KE is receiving about 1300 MW electricity from national grid without a proper PPA because it expired in 2015. Chief Operating Officer (COO) KE Aamir Zia informed the Committee that total amount of KE’s receivables were Rs 321 billion as of August 2021, of which Rs268 billion are Tariff Differential Subsidy (TDS) claims whereas Rs 28 billion are overdue from KWSB (strategic customer), Rs 11 billion from CDGK and other provincial entities and Rs 18 billion from PSM, GoB and other federal entities.

On the other hand, stock of KE’s payables was Rs 263 billion, of which the share of CPPA-/ NTDC was Rs235 billion, SSGC Rs 14 billion and other federal and provincial dues were about Rs 14 billion.

During the meeting the chairman of the standing committee argued that KE should pay Rs 48 billion to government which were due since 2008. He also suggested that actually KE is responsible for circular debt.

During the meeting the power division was also directed to scrap tests of Linemen conducted by Khyber Medical College (KMC) for Peshawar Electric Supply Company (Pesco) as open cheating was witnessed during the test.