National Electric Power Regulatory Authority (Nepra) will release a policy paper to give precise guideline on the issue of power purchase by the bulk power consumers (BPCs).
The authority will streamline the activities of power generation companies (Gencos), power distribution companies (DISCOs) and BPCs.
According to a statement, the power regulatory body held a conference here on Thursday to deliberate on and discuss various aspects of the Nepra Act, especially sections 21 and 22 that deal with the relations among the three stakeholders.
A large number of representatives of the ministries, DISCOs, Gencos, independent power producers (IPPs), small power producers (SPPs) and consumer bodies participated.
Nepra Act provides exclusive right to the DISCOs to supply and sell power to all consumers located within their territory. However, section 21 and 22 of the Act also provide for a multi-seller competitive regime where Gencos and DISCOs are allowed to sell power to BPCs (consumers with a load of one MW and above).
In order to streamline such activities, section 22 provides procedural requirements for the Gencos and BPCs and the latter stipulates that the intending generation company with an authorisation from Nepra to be able to make sales and BPCs are required to give a three year notice to the host DISCO before stoppage of purchase of power.
The Section 22 additionally requires that BPC which stops purchasing power will continue to pay cross subsidy to the host DISCO after stoppage of power.
The experts gave detailed presentations to advocate their point of view and Nepra said that it would issue a policy paper in respect of the issues discussed during the conference. The authority intends to hold similar conferences on such important issues in the near future.
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