ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed a ban on giving extension to a power purchase agreement with the K-Electric because of which the K-Electric will not find 650MW of electricity after the expiry of a five-year agreement with the National Transmission and Dispatch Company (NTDC) from early next year.
Documents available with Daily Times reveal the federal government’s strategy to stop supplying 650MW of electricity to the K-Electric after the expiry of the power purchase agreement on January 25, 2015.
Under the agreement, the NTDC was to supply 650MW of electricity to the K-Electric for a period of five years.
However, NEPRA has imposed a ban prior to K-electric formally applying for an extension to the said agreement. As a result of this ban, supply of 650MW of power to the K-Electric will stop on January 26, 2015.
NEPRA has further made it clear that power generation from two of the company’s power plants at Bin Qasim would decrease by 420 MW of electricity due to their recent conversion to coal.
Sources at the Water and Power Ministry told this scribe that power shortfall of Karachi would go up from 1,000MW of electricity because of suspension of 650MW of power to the K-Electric. They said that K-Electric has generation capacity of 2,957MW of electricity from its plants. But, it (K-Electric) has not produced power from these plants in line with their capacity.
K-Electric sources, however, believe that NEPRA has no authority to stop giving extension. They are also hopeful that the NTDC would give extension to the power purchase agreement.
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