Discos, KE to ink SLAs with CPPs

ISLAMABAD: The Power Division has directed power Distribution Companies (Discos) and K-Electric to sign Service Level Agreements (SLAs) with Captive Power Plants (CPPs) and industrial consumers

According to letters sent to the Chief Executive Officers (CEOs) of Discos and K-Electric, the purpose of these SLAs is to encourage consumers to rely more on the DISCOs’ distribution systems by offering competitive terms and conditions. The agreements aim to ensure a reliable, uninterrupted, and high-quality electricity supply to meet the industrial needs of consumers.

CEOs have been instructed to have the SLAs vetted by their legal teams and approved at the appropriate levels. The SLA is supplementary to and does not replace or override the conditions of the Distribution Code, Grid Code, Consumer Service Manual, or any other relevant regulations or documents.

The Power Division believes that the service level agreements should include provisions for delivering consistent, reliable, and quality power to industries. These provisions are designed to meet the specific needs of these industries. In cases where the agreements are not implemented or are violated, fines will be imposed on the power distribution companies.

The contracts are proposed to last for an initial period of two years and include mechanisms for addressing technical faults related to electricity supply, along with procedures for dispute resolution.

The letter also clarifies that these agreements are not substitutes for grid codes, transmission codes, customer service manuals, or any prevailing laws.

These directives were issued following the government’s decision to raise gas rates for CPPs and impose additional levies, aimed at encouraging these industries to shift to the grid for their energy needs.

Obligations of the Company (* Prepared from Performance Standards of NEPRA)
The Company shall:

1. Provide steady state electricity supply at the agreed voltage levels:
   a. For connection at 0.4 kV: (Lower Limit = 0.38 kV, Upper Limit: = 0.42 kV);
   b. For connection at 11 kV: (Lower Limit = 10.45 kV, Upper Limit: = 11.55 kV); and
   c. For connection at 132 kV: (Lower Limit = 125.4 kV, Upper Limit: = 138.6 kV).
   d. Maintain Frequency at 50 Hz ±1% (Lower Limit = 49.5 Hz, Upper Limit = 50.5 Hz).
2. Maintain a minimum reliability rate of 99% in case of connection at 0.4 kV, 99.5% in case of connection at 11 kV and 99.8% in case connection at 132 kV, therefore, ensuring that per year duration of unplanned Long Duration Power Supply Interruptions do not exceed 88 hours, 44 hours and 26 hours for connections at 0.4 kV, 11 kV and 132 kV, respectively, except during faults occurring in system due to external reasons and Force Majeure events.
3. Notify the Consumer of planned outages at least 48 hours in advance and ensure planned outages do not exceed 8 hours per instance.
4. In case of planned outage, convenient timing of the Consumer shall be observed to the extent technically possible.
5. Establish one window complaint redressal desk dedicated to the Consumer, in addition to the normal platforms
6. Provide real-time monitoring and support to address unexpected outages within 2 hours for minor faults and within 6 hours for major faults.
7. Install and maintain equipment for voltage regulation or similar equipment on the system in grid to ensure stable voltage supply during peak demand periods.
8. Notify the Consumer at least 30 minutes in advance in case of emergency supply cutoffs.
9. Ensure that all regular cutoffs and emergency cuts are excluded from penalization.
10. Conduct regular maintenance which can be increased upon mutual agreement of both parties.
11. Participate in regular meetings with the Consumer to identify and implement measures for improving reliability.
12. Invest in modernizing and upgrading the distribution infrastructure to improve system efficiency and reliability. Customer should bear the cost if system upgraded as per request or requirement of customer.
13. If either party raises objections to any clauses of this SLA, the matter shall be referred to the dispute resolution mechanism outlined in Section 12.