Karachi Electric Supply Company (KESC) and National Transmission and Distribution Centre (NTDC) have signed a long awaited power purchase agreement (PPA) for power supply of 650 MW, Business Recorder has learnt. Under the agreement, NTDC will supply 650 MW electricity to KESC on the electricity tariff rates determined by National Electric Power Regulatory Authority (NEPRA).
Sources said that the agreement was carried out by the efforts on both sides including KESC management and Finance and Water and Power Ministries that would ensure uninterrupted power supply to KESC. The agreement will remain effective for five years.
Sources said that it was the landmark decision that was made to provide uninterrupted supply of electricity to KESC. "Chief Financial Officer (CFO) PEPCO Razi Abbas played an important role to get KESC and NTDC into power supply agreement to provide electricity for the consumers of Karachi," sources maintained.
Earlier, the Cabinet Committee on Energy Crisis (CCEC) had also directed the KESC to sign PPA with NTDC and fuel supply agreement (FSA) with Sui Southern Gas Company Limited (SSGCL) and the Pakistan State Oil (PSO) to streamline its business. "These agreements were essential to make the power sector more efficient, sources added.
Sources said that teams of PSO and KESC were engaged in giving final touches to sign the fuel supply agreement. "Under the agreement, PSO will provide fuel supply to KESC as per its requirements," sources said adding that Managing Director (MD) PSO Irfan Qureshi and KESC management were making all out efforts to enter into agreement. "The efforts are also ongoing to sign gas supply deal with SSGCL for power generation," sources said that gas utility provides an average 190 MMCFD gas to KESC for power generation.