Staff Report
ISLAMABAD: In a major initiative to enhance electricity supply and encourage industries to rely more on the national grid, the Power Division has directed all power distribution companies (DISCOs), including K-Electric (KE), to sign Service Level Agreements (SLAs) with industries that have captive power generation.
According to a letter issued by the Power Division to the Chief Executive Officers (CEOs) of DISCOs on January 30, 2025, the purpose of these SLAs is to offer competitive terms and ensure a stable, reliable, and uninterrupted electricity supply tailored to industrial needs.
“It is requested to get this Service Level Agreement (SLA) vetted by your legal team and approved at the appropriate level. This agreement is in addition to and does not replace or override the conditions and parameters of the Distribution Code, Grid Code, Consumer Service Manual, or any other applicable rules,” the letter stated.
A spokesperson for the Power Division emphasized that these SLAs will include specific clauses addressing industries’ electricity requirements and ensuring continuous power supply. In case of violations or failure to meet commitments, penalties will be imposed on DISCOs to ensure compliance.
The agreements, initially planned for a two-year period, will also incorporate mechanisms for addressing technical faults in power supply and a dispute resolution system to resolve any conflicts between power companies and industries.
To expedite the process, the Power Division has instructed all DISCOs to complete the necessary legal formalities without delay. However, the directive clarifies that these agreements will function as an additional framework and will not override any existing legal or regulatory provisions governing the power sector.
