‘SLA to be signed between DISCOs, industrial consumers with captive generation’
The Power Division has issued a special directive to all electricity distribution companies, including K-Electric, regarding the execution of exclusive service level agreements with industries that have captive power generation.
The division has directed the distribution companies to sign a service agreement with the industry with captive generation. A Service Level Agreement (SLA) to be signed between electricity distribution companies (DISCOs), and industrial consumers with captive generation, says the directive.
The purpose of this SLA is to encourage the consumers to increase reliance on the DISCOs distribution system by offering competitive terms and conditions and to ensure a reliable, uninterrupted and quality electricity supply to meet the consumer’s industrial requirements,” said two separate letters written to chief executive officers of all ex-Wapda Discos and KE by the Power Division.
“In view of above, 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 and the Consumer’s Service Manual, and any other applicable document/rules,” said the letter. The spokesman of Power Division said that the objective of these service level agreements is to enhance reliance on the transmission system of electricity distribution companies.
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 instructed all electricity distribution companies to fulfill the legal requirements for these service level agreements immediately. — ERMD
