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PD approaches CPPs for SLAs

by AMG
March 6, 2025
in Energy
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PTC decries gas tariff hike for Captive Power Plants
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ISLAMABAD : Power Division has reportedly approached Captive Power Plants(CPPs), across the country, convincing them to sign Service Level Agreement (SLA) with power Distribution Companies (DISCOs)  for uninterrupted supply to the industrial units, sources told Newzshewz.

  Power Division has sent letters to the CPPs at a time when the IMF Review Mission is the capital on whose demand the government decided to disconnect indigenous to the industrial units aimed at forcing them to shit on National Grid. Apparently, the move remained unsuccessful as industrial units in Karachi  are giving preference to hybrid system over National Grid.  

According to the Power Division it has launched a number of initiatives to provide efficient, reliable, and sustainable power supply to the consumers across the country especially the industrial sector which plays a pivotal role in national development and job creation as well as economy. As part of this ongoing effort, Power Division has embarked on a well thought out plan of signing service level agreements  with the industrial units which were running on Captive Power Plants (CPPs). The SLAs will be signed between the individual industrial unit and the concerned DISCO.

 Power Division, in its communication has further stated that these agreements will provide industrial units with clear operational frameworks, priority access to uninterrupted electricity supply, and streamlined coordination with DISCOs. By signing the SLAS, industrial units with CPPS will benefit from improved communication channels, predictable power supply mechanisms, and a transparent working relationship that fosters long-term partnership between the power supplier and the industrial consumers.

The Power Division has further stated it  has already sent out the draft SLAs to all the DISCOs and have directed them to reach out to CPPs for discussion and finally signing these agreements.

The Power Division has requested the CPPs to engage directly with the respective DISCO to initiate and  finalize the signing of SLA, assuring full support at the federal level to executive the pacts. Ends

Penalty on CPPs  to rise from 5% to 20% over 18 months ?

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