Negotiated agreement with AGL: DG Audit (Power) seeks complete record
ISLAMABAD: The Director General Audit (Power) has sought complete record of negotiated agreement between Attock Gen Limited (AGL) and Government of Pakistan, well informed sources told Business Recorder.
Attock Gen Limited and Central Power Purchasing Agency -Guaranteed (CPPA-G) have signed a Negotiated Agreement after negotiations with the Task Force on Energy which was also approved by the Federal Cabinet.
In a communication with the Power Division, Taimur Khan, Inspecting Officer (IP-MoE), Islamabad has asked Power Division to provide the following documents: (i) Cabinet decision regarding Attock Gen limited;(ii) Negotiated Agreement summary of AGL; and (iii) implementation status of AGL's revised pact.
As per terms agreed with task force: CPPA-G, Attock Gen file tariff revision plea
Recently, National Electric Power Regulatory Authority (NEPRA) had held a public hearing on the joint application of AGL during which none of the parties raised any specific questions as the deal was struck at the highest forum.
The CPPA-G and 156MW Attock Gen Limited had filed a joint application for revision in existing tariff of the project as per terms and conditions agreed with the Task Force on Power subject to withdrawal of proceedings for abnormal profits.
Both the CPPA-G and Attock Gen have agreed on a 'hybrid take and pay' mechanism like other Independent Power Producers (IPPs).
Both parties, in their tariff revision petition had prayed NEPRA to: (i) accept the application; (ii) revise indexation mechanism of the Operation and Maintenance Component of the tariff as agreed between the applicants in clause 2.2 of the Application of Acceptance (AA); (iii) revise indexation of insurance component of the tariff as agreed clause 2.2( b) of the AA; (iv) adjust the Foreign Component of RoE and RoEDC of the tariff as agreed between the Applicants in clause 2.2@) of the AA; and (v) revise the existing mechanism of 'Take or Pay' to Hybrid Take and Pay' model, whereby the Company is entitled for 35% of RoE and RoEDC as part of CPP and remaining RoE and RoEDC component is subject to generation beyond 35% of contract capacity as agreed between the Applicants in clause 2.2b) of the AA.
The power company requested NEPRA to implement the clause 3.2 of the AA which provides that 'the revised tariff shall be effective from: (a) the date of notification and (b) withdrawal of respective letters and/ or claims and /or proceedings of NEPRA against the Company for abnormal profits and appropriate notice that the same stands fully and finally withdrawn and resolved, failing which the past excess adjustments (fuel and O&M) will be set aside.
The Regulator has also been requested to approve the tariff adjustment to become effective as provided in clause 3.2 of the AA.
The Regulator is likely to issue determination of AGL within current month so that savings from the revised deal be made part of the QTAs' adjustment.
Copyright Business Recorder, 2025
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