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ECC Revises Power Deals to Save Rs163b, Approves Grants for Gas Links and Disaster Costs

The package aims to lower generation costs to ease circular debt pressures.

Overview

  • Reworked electricity purchase contracts with 15 plants are projected to save about Rs163 billion over their remaining terms and include a one-year waiver of late payment surcharges to clear Rs235 billion owed to government-owned plants.
  • The ECC revised terms for 14 wind projects and the Quaid-e-Azam Solar plant, cut late payment KIBOR by 2%, reduced O&M and insurance caps for certain wind plants, fixed solar ROE at 13% with a Rs168/$ exchange rate, and terminated Altern Energy’s contract.
  • A Rs3 billion technical supplementary grant will fund gas connections for villages within five kilometres of production fields through SNGPL and SSGCL.
  • Disaster-response reimbursements of Rs3.63 billion were approved for NDMA, alongside Rs1.3 billion for SDG-linked power schemes and Rs200 million to settle court-directed BECS teacher wage differentials for 2017–2021.
  • The committee cleared Rs1.47 billion for federal information campaigns with a directive to seek remaining funds next quarter and approved Rs13.1 million for Pakistan’s annual International Energy Forum contribution.