ISLAMABAD: The Uch Power Company has threatened to shut down its power plant as a consequence of failure to get adequate quality and quantity of water which will also constitute a force majeure event.
Well-informed sources told Business Recorder that PPIB has received letters from Uch Power (Pvt) Ltd (Uch) and Uch-II Power (Pvt) dated January 23 and January 28, 2025 on this issue whereby it has been conveyed that since 11th January 2025, their power plants have been restricted from drawing water from the canal due to an increase in its conductivity and a significant decline in its water level.
Furthermore, the anticipated outages at the canal in April 2025 pose a substantial risk to the operational continuity of their complexes.
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The Uch and Uch-II power plants are vital projects that contribute cost-effective electricity to the national grid. Any disruption or reduction in their power generation will adversely impact the availability of affordable electricity, particularly during the summer season when the national electricity demand is at its peak.
In light of the foregoing Chief Secretary Balochistan has been requested to ensure the provision of adequate quantity and quality of water to Uch and Uch-II power plants from the Pat Feeder Canal to avoid occurrence of a force majeure event under and in accordance with the provisions of the PPA, the Implementation Agreement (IA) and the Gas Supply Agreement (GSA).
Earlier, Chief Executive Officer, Uch Power Private (Limited), in a letter to PPIB, referred to his previous letters to the Irrigation Department (Government of Balochistan) to seek the PPIB’s immediate attention and assistance to resolve the water quality and shortage issues from the Pat Feeder Canal causing shortage of water for Uch power station.
According to the CEO, since January 11, 2025, UPL is restrained to draw water from the canal due to rise in its conductivity, from the normal value of approx. 300 µ Si/cm to a current value of above 600 µ Si/cm as well as a substantial decline in the water level of the canal reaching a critical low.
The non-availability of adequate quality water is causing depletion of the UPL water reserves and, considering the expected upcoming Canal outage in April 2025, poses a significant risk to operational continuity of the UPL Complex which may cause significant loss in generation of economical electricity for the national grid.
The continuous availability of 30 cusecs (16.141 million gallons per day) of water from the Canal is Government of Balochistan obligation under the Assistance Agreement dated March 4, 1996.
The power company requested PPIB to take-up the matter with the concerned authorities to resolve this critical issue ensuring supply of adequate quality water to UPL Complex on an immediate basis. This is critical to replenish reserves for the upcoming canal outage. Any delay in addressing this issue will rapidly deplete our water reserves, it added.
The Company has indicated that it will shut down the plant as a consequence of failure to supply adequate quality and quantity of water to UPL and shall constitute a Force Majeure Event under the provisions of UPL’s Power Purchase Agreement of November 23, 1995, Implementation Agreement of November 19, 1995 and Gas Supply Agreement of November 2, 1995.
This correspondent sent a message to the Chief Executive Officer of Uch Power Company for comments on the issue of water availability but he did not respond till filing of this report.
Copyright Business Recorder, 2025
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