ISLAMABAD: In an effort to absorb surplus electricity capacity and enhance industrial reliance on the national grid, the Power Division has directed all public and private electricity distribution companies to sign Service-Level Agreements (SLAs) with captive power plant (CPP) consumers.
The initiative aims to ensure a stable, high-quality power supply to industries while holding distribution companies accountable for reliability standards. Under the draft SLA, power companies must maintain a 99% reliability rate and compensate CPP consumers at Rs10,000 per hour for voltage and frequency deviations. Additional penalties of Rs50,000 apply for failure to notify planned outages or maintain committed reliability levels.
The agreements, initially valid for two years, will outline mechanisms for addressing technical faults and dispute resolution. Distribution companies are required to provide real-time monitoring, establish a dedicated complaint redressal system, and upgrade infrastructure to improve efficiency.
While the directive emphasizes legal compliance, experts argue that such agreements require regulatory approval before implementation.
Story by Khaleeq Kiani