Altern Energy Seeks Early Termination of Power Contract Amid Losses

Altern Energy Limited (PSX: ALTN) has decided to seek early termination of its power agreements due to sustained operational losses stemming from a lack of electricity dispatch demand in recent years. The company’s Board of Directors resolved in a meeting on March 24, 2025, to submit a request to the Central Power Purchasing Agency (CPPA) for the termination of three key agreements: the Power Purchase Agreement (PPA) with CPPA, the Implementation Agreement (IA) with the Government of Pakistan, and the associated sovereign guarantee. The proposal has been forwarded to the company’s shareholders for review and approval in the upcoming Shareholders’ Meeting. The decision aligns with the company’s ongoing financial challenges and aims to mitigate further losses. Altern Energy has formally disclosed this material information to the Pakistan Stock Exchange in compliance with regulatory requirements. The Company has a Power Purchase Agreement (PPA) with its sole customer, Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) for thirty years. The Company also holds direct and indirect investments in other companies engaged in the power sector.