K-Electric, Pakistan govt ink agreements to 'settle long-term disputes'

Pakistan government and K-Electric on Friday signed various agreements to address ‘long-term disputes’, quoting Power Division’s statement, ARY News reported.

According to the declaration issued by the power division, K-Electric and the Pakistan government signed various agreements including tariff differential subsidy, power purchasing agreement, and mediation agreement to help improve power supply and address the issues.

The meditation agreement will help in the clearance of dues between the K-Electric and the government.

Caretaker Minister for Energy, Muhammad Ali congratulated the people of Karachi on the landmark agreements between the Pakistan government and the city’s sole power provider.

Read more: K-Electric’s licence renewed for 6 months

The minister said the government is trying hard to create ease in the power sector.

On July 20, the National Electric Power Regulatory Authority (NEPRA) provisionally renewed K-Electric’s (KE) licence for six months.

K-Electric had requested NEPRA to renew the distribution licence for another 20 years as the current term expired on July 20, 2023.

K-Electric in its request to the NEPRA has stated that it is serving 3.4 million consumers and the licence renewal is in the interest of consumers and the power industry.