ISLAMABAD: The Director General Audit (Power) has requested the complete documentation related to the negotiated agreement between Attock Gen Limited (AGL) and the Government of Pakistan, sources told Business Recorder.
The agreement, reached after negotiations between AGL and the Central Power Purchasing Agency–Guaranteed (CPPA-G), and facilitated by the federal Task Force on Energy, was formally approved by the Federal Cabinet. However, the DG Audit has now stepped in to assess the transparency and implementation of the revised pact.
In an official communication, Taimur Khan, Inspecting Officer (IP-MoE), has asked the Power Division to submit the following: (i) the Cabinet’s decision on AGL; (ii) the summary of the negotiated agreement; and (iii) the current implementation status of the revised agreement.
Earlier, a joint application was submitted by CPPA-G and AGL to the National Electric Power Regulatory Authority (NEPRA) for a revision of AGL’s existing tariff. The proposed revision is part of the government’s broader effort to shift Independent Power Producers (IPPs) to a “hybrid take-and-pay” model. NEPRA held a public hearing on the application, during which no objections were raised — indicating consensus among stakeholders.
Under the revised terms, AGL and CPPA-G have requested NEPRA to:
- Revise the indexation mechanisms for Operation & Maintenance and insurance components of the tariff.
- Adjust the foreign component of Return on Equity (RoE) and Return on Equity During Construction (RoEDC).
- Transition from a “Take or Pay” to a “Hybrid Take and Pay” model, where 35% of RoE and RoEDC will be fixed, with the rest tied to actual generation beyond the contracted 35% capacity.
The agreement also stipulates that the revised tariff will only take effect once relevant proceedings, letters, and claims regarding “abnormal profits” against AGL are formally withdrawn. AGL has emphasized that without such resolution, past excess adjustments—especially for fuel and O\&M—could be reversed.
NEPRA is expected to issue its final determination on the revised tariff within the current month, enabling the resulting savings to be reflected in the upcoming Quarterly Tariff Adjustments (QTAs).
Story by Tahir Amin
