The Economic Coordination Committee (ECC) of the Cabinet on Friday approved the Power Division proposal for signing of the draft PPAA, ICA, TDA and Mediation Agreements between K-Electric (KE) and the government of Pakistan entities.

As per a statement released by the Finance Division, Caretaker Federal Minister for Finance, Revenue, and Economic Affairs Dr Shamshad Akhtar presided over a meeting of the ECC.

The ECC took up the matter of approval of the draft of Power Procurement Agency Agreement (PPAA), Inter-Connection Agreement (ICA), Tariff Differential Subsidy (TDS) Agreement and Mediation Agreements to be signed with K-Electric. Ministry of Energy (Power Division) briefed the committee on the observations made by the members of the ECC and provided the requisite additional data on the working of the Central Power Purchasing Agency (CPPA-G).

After detailed discussion and deliberation, ECC decided to approve the proposal of Power Division for signing of the draft PPAA, ICA, TDA and Mediation Agreements between K-Electric and GoP entities, read the statement.

Moreover, the ECC also directed Power Division to present the matter related to KE’s generation enhancement plan to the Cabinet Committee on Energy (CCoE), which should focus on reducing the cost of electricity as well as on the resultant subsidies.

The meeting was attended by the Minister for Communication, Railways & Maritime Affairs Shahid Ashraf Tarar, the Minister for Privatization Fawad Hasan Fawad, Minister for Power & Petroleum Muhammad Ali, Advisor to PM on Finance Waqar Masood, Federal Secretaries, and other senior government officials of the relevant ministries.

Earlier, the ECC of the Cabinet did not approve the proposed draft PPAA, ICA and TDS agreements and directed Power Division to revise them after due consultation with all stakeholders as Power Division faced strong opposition from the concerned stakeholders.