Lahore: Altern Energy Limited ("AEL"), in conjunction with its parent and subsidiary companies, has proposed an early termination of its power purchase agreements ("PPAs") with the Central Power Purchasing Agency and the Guarantee from the Government of Pakistan. The proposal aims to advance the termination date before the end of their current term in 2032.

The subsidiary, Rousch (Pakistan) Power Limited ("RPPL"), which manages a power plant under the 1994 Power Policy, has been part of discussions initiated by the government's Task Force for Power Sector Reforms. This proposal was formally presented on October 18, 2024, during RPPL's Board of Directors meeting, and has moved forward to seek shareholder approval.

According to information available from the Pakistan Stock Exchange (PSX), RPPL aims to transfer the management of their plant, the IA and CPPA complex, to the government as specified in the PPAs. The agreements, termed collectively as the "Agreements" and including a Guarantee endorsed by the President of Islamic Republic of Pakistan, were initially set to expire in 2032. However, the new proposal suggests a much earlier cessation, highlighting a proactive approach towards power management reforms in Pakistan.

The company has communicated this strategic shift to the Pakistan Stock Exchange and is awaiting the formal endorsement of shareholders. If approved, this early termination could pave the way for a restructuring of how power projects are managed and potentially lead to more efficient operations in line with current governmental and environmental policies.