By SKM
January 30, 2025
ISLAMABAD: The Power Division facing the challenges of idle capacity of electricity and increasing non-utilization of the grid electricity mainly because of high tariffs and mass shift to solar power, has issued a special directive to all electricity distribution companies (DISCOs), including Karachi Electric, regarding the execution of exclusive service level agreements (SLAs) with industries that have captive power generation.
The government wants the industrial sector to get connected with the grid electricity, but the industry is hesitating to be part of the grid arguing that the electricity from the grid is fraught with fluctuations, interruptions and, jerks which doesn’t suit it as their costly textile machinery is prone to be damaged when the grid electricity hit the industry. The government in a bid to allay these concerns of the industry has directed all DISCOs to sign SLAs with the industrial units which have captive power plants.
The purpose of SLAs is to i) Encourage the Consumer to increase reliance on the Company’s Distribution System by offering competitive terms and conditions, 2) Ensure a reliable, uninterrupted, and quality electricity supply to meet the Consumer’s industrial requirements, and 3) Define mutual obligations, and penalties to ensure compliance and transparency.
These agreements will include provisions ensuring a stable, reliable, and high-quality electricity supply to these industries, catering to their specific needs.
In case of non-compliance or violations by distribution companies, penalties will be imposed. Initially, these agreements are proposed to be for a period of two years. The agreements will also cover mechanisms for addressing technical faults in electricity supply and their resolution.
A structured mechanism for resolving disputes arising under these agreements will also be outlined. The directive instructs all electricity distribution companies to fulfill the legal requirements for these service level agreements immediately.
Furthermore, the directive reiterates that this agreement does not override or replace the conditions and parameters of the Grid Code, Distribution Code, Consumer Service Manual, or any other prevailing law.
As per obligations of the power distribution company prepared for Performance standards of NEPRA), the Company shall provide steady state electricity supply at the agreed voltage levels including a) For connection at 0.4 kV: (Lower Limit = 0.38 kV, Upper Limit: = 0.42 kV); b) For connection at 11 kV: (Lower Limit = 10.45 kV, Upper Limit: = 11.55 kV); and c) For connection at 132 kV: (Lower Limit = 125.4 kV, Upper Limit: = 138.6 kV) and d) Maintain Frequency at 50 Hz ±1% (Lower Limit = 49.5 Hz, Upper Limit = 50.5 Hz).
DISCOs will maintain a minimum reliability rate of 99% in case of connection at 0.4 kV, 99.5% in case of connection at 11 kV and 99.8% in case connection at 132 kV, therefore, ensuring that per year duration of unplanned Long Duration Power Supply Interruptions do not exceed 88 hours, 44 hours and 26 hours for connections at 0.4 kV, 11 kV and 132 kV, respectively, except during faults occurring in system due to external reasons and Force Majeure events.
DISCOS will notify the Consumer of planned outages at least 48 hours in advance and ensure planned outages do not exceed 8 hours per instance.
In case of planned outage, convenient timing of the Consumer shall be observed to the extent technically possible. DISCO will establish one window complaint redressal desk dedicated to the Consumer, in addition to the normal platforms and provide real-time monitoring and support to address unexpected outages within 2 hours for minor faults and within 6 hours for major faults.
DISCOs will install and maintain equipment for voltage regulation or similar equipment on the system in grid to ensure stable voltage supply during peak demand periods and notify the Consumer at least 30 minutes in advance in case of emergency supply cutoffs.
It has been ensured that all regular cutoffs and emergency cuts are excluded from penalization. DISCO will conduct regular maintenance which can be increased upon mutual agreement of both parties.
The officials of DISCOs will participate in regular meetings with the Consumer to identify and implement measures for improving reliability.
The distribution companies will invest in modernizing and upgrading the distribution infrastructure to improve system efficiency and reliability. Customer should bear the cost if system upgraded as per request or requirement of customer.
If either party raises objections to any clauses of this SLA, the matter shall be referred to the dispute resolution mechanism outlined in Section 12.
However, Industrial Consumer with Captive-Generation will be treated as consumers.
This SLA is made on this [date] and governs the terms and conditions for the quality and reliability of service provided by the Company and consumption of electric power to the Consumer. Ends
