Contract for 650MW supply to K-Electric cannot be renewed: ministry

ISLAMABAD: The Ministry of Water and Power issued a statement on Friday saying that the contract to supply 650MW of electricity to K-Electric cannot be renewed.

The ministry went on to say that K-Electric should ensure its own production at full capacity to meet the demands.

It further said that in case of an emergency shortage, at most 200 to 300MW could be provided.

A summary of the decision has been sent to Prime Minister Nawaz Sharif.

According to a K-Electric spokesperson, he warned that if the supply is stopped then there could be a possible blackout in the city as the company has no backup plan. He also said that the matter of the ministry not supplying the requirement is sub judice and could lead to contempt of court.

Meanwhile, Karachi Chamber of Commerce & Industry President Iftikhar Ahmed Vohra said that if the national grid fails to provide the required demand, industrial production may be heavily affected.

He demanded from the government that it should reconsider the supply of 650MW and include it in the contract.

On January 26, the ministry had directed the National Power Control Centre (NPCC) not to suspend electricity supply to K-Electric following the expiry of the power distributor’s 5-year agreement for 650 MW supply on January 25.

According to sources, a renewed contract with fresh conditions was under consideration earlier.

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