Islamabad October 15 2023: Government will not provide any extenstion to contract with Hub Power Company beyond March 2027 for generation of electricity, according to Ministry of Energy.
According to the Ministry of Energy, the Power Purchase Agreement with HUBCO is set to conclude in March 2027, with no plans for any contract extensions with HUBCO. The agreement was originally intended for operation using Residual Furnace Oil and has not undergone any conversion to coal. As of now, HUBCO continues to operate on Residual Furnace Oil.
During FY23, the Hub Power reported topline of PKR 44,516 million (FY22: PKR 62,544 million) against Energy and Capacity invoices to the power purchaser, CPPA-G. The decline in topline is a result of lower generation of 205GWh (FY22: 1,229GWh) during the period due to the governments priority to obtain electricity from plants with lower generation cost.
"KAPCO completed its PPA term of 25 years on 24-10-2022. No extension has been made for purchase/sale of electricity . Since PPA’s expiry , plant is shut down. However it is providing free grid station facilities to the consumers of MEPCO with government holding 45% shares" it further added.
Engro Power Project has no investment from Govt. of Sindh and government has no shareholding . However, the Company “Sindh Engro Coal Mining Company” (SECMC), has investment from Govt. of Sindh of 51% of the total Equity of the project and Govt has 51% shareholding in SECMC.