The Federal government and Karachi Electric (KE) signed various agreements on Friday, aimed at ensuring energy security for Karachi.
The agreements were signed at the Energy Division through representative bodies in the presence of Muhammad Ali, Minister of Energy, Power and Petroleum, and Dr Shamshad Akhtar, Minister of Finance while KE was represented by CEO, Moonis Alvi and CFO, Muhammad Aamir Ghaziani.
These agreements address longstanding disputes between the government and KE, particularly in formalizing and securing a stable power supply from the National Grid to Karachi, up to the interconnection capacity.
Resolving these legacy matters is crucial for both Karachi’s energy security and the sustainability of KE as a company. The agreements include the Tariff Differential Subsidy Agreement (TDA) and Power Purchase Agency Agreement (PPAA), marking a significant milestone for the power sector. The Interconnection Agreement (ICA) is expected to be signed after approval from NEPRA.
The firm supply of energy from the National Grid is anticipated to provide affordable power to KE customers. The signing of a Mediation Agreement (MA) is also essential for reconciling legacy contentions on payables and receivables between KE and government entities.
Caretaker Minister for Power and Petroleum Muhammad Ali said, “We are tackling a Gordian knot in the power sector with a vision to bring efficiency and long-term stability. Today’s signing is one facet of this, where we have addressed legacy bottlenecks. It demonstrates the willpower and commitment of our institutions towards Pakistan.”
The minister said the Ministry is working hard to provide an enabling environment for the power sector to thrive because the ultimate beneficiary of our interventions is the customer.
Muhammad Ali thanked the Finance Minister Dr. Shamshad Akhtar for her involvement and support.
“This is the best news to the Karachi consumers as power issues will be much more stabilized now. KE has always been treated by the government as a partner” he added. Caretaker Federal Minister of Finance Dr. Shamshad Akhtar, said “Energy underpins progress on a national level.—APP
