ISLAMABAD: Power Division has directed power Distribution Companies (Discos) and K-Electric to sign Service Level Agreement (SLA) with the Captive Power Plants (CPPs) and industrial consumers.

According to the letters written to Chief Executive Officers (CEOs) of Discos and K-Electric, the purpose of the SLA is to encourage the consumers to increase reliance on the DISCOs distribution system by offering competitive terms and conditions and to ensure a reliable, uninterrupted and quality electricity supply to meet the consumer’s industrial requirements.

CEOs have been requested to get the Service Level Agreement (SLA) vetted by legal teams and approved at the appropriate level. This Agreement is in addition to and does not replace or override the conditions and parameters of the Distribution Code, Grid Code and the Consumer’s Service Manual, and any other applicable document/rules.

PTC concerned at gas price hike for CPPs

Power Division argues that service level agreements include provisions related to the provision of consistent, reliable and quality power to these industries. The relevant provisions are intended to meet the needs of these industries. In the case of non-implementation or violation of the agreements, fines will be imposed on power distribution companies.

The contracts are proposed to be initially for a period of two years. Mechanisms for resolving technical faults related to electricity supply and their resolution are also included in the contracts. Mechanisms for resolving any disputes have also been formulated in the contracts.

The letter also reiterates that these agreements are not a substitute for grade codes, transmission codes, customer service manuals or any prevailing law.

The letters to CEOs of Discos and K-Electric have been written after the government’s decision to increase gas rates for the CPPs in addition to levy, meant to force them to shift to the grid.

Copyright Business Recorder, 2025