Altern Energy Limited announced that it will be seeking early termination of its Power Purchase Agreement (PPA), Implementation Agreement (IA), and the Guarantee issued by the Government of Pakistan, according to a filing at the Pakistan Stock Exchange (PSX) on Tuesday.Â
The decision follows continued operational losses due to a lack of dispatch demand from its off-taker over the past several years.
The company has submitted a request to the Central Power Purchasing Agency (Guarantee) Limited (CPPA) for the early termination of these agreements. The board has referred the proposal for approval to the company’s shareholders, who will review the matter in an upcoming meeting.
Altern Energy’s decision comes as the company faces growing financial challenges, with the continued lack of demand for its services contributing to mounting operational losses. The company’s request to end these agreements, including the key PPA, is aimed at reducing further financial strain and is a strategic attempt to mitigate ongoing losses.
The Board of Directors has assured that the company will proceed with the necessary regulatory steps and shareholders’ approval to address this matter.
Altern Energy’s principal activity is to build, own, operate and maintain a gas fired power plant. The company’s sole customer is Central Power Purchasing Agency (Guarantee) Limited for thirty years. The company also holds direct and indirect investments in other companies engaged in the power sector.
