ISLAMABAD: The Power Distribution Companies (Discos) combined five-year Power Acquisition Program (PAP) 2022-23 to 2026-27 baffled NEPRA as it was neither aligned with IGCEP nor Transmission System Expansion Plan (TSEP) of NTDC.
The Authority comprising of Chairman Nepra Waseem Mukhtar, Member (Technical) Sindh Rafique Ahmad Shaikh, Member (Tariff and Finance) Mathar Niaz Rana, Member KPK Maqsood Anwar Khan and Member (Law) Amina Ahmed officiated a hearing in this regard.
The Authority was informed that there was no forecast of potential impact of the proposed combined PAP on the end-consumer tariff or otherwise on basket price of Discos. Further, it was agreed during the consultative session that Discos do not have the tool to come up with an impact analysis on consumer end tariff.
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During the public hearing, Discos acknowledged that they have not calculated PAP financial impact on consumers. The program has ensured inclusion of committee projects but not those that are optimized. The PAP is not aligned with the existing IGCEP.
However, an official explained that PAP is linked with the forthcoming IGCEP as it is a firm and not indicative document. The government has average projected GDP growth in the range of 3.2 % to 3.5 per cent during the next few years.
The issue of Kot Addu power Company (Kapco) also came under discussion and Disco’s representative argued that it would be utilized for load factor and its financial impact will be passed on to the consumers across the country as Mepco was not ready to bear its burden alone. However, TESCO is not ready to accept the proposal. Solar project of 600 MWp at Muzaffargarh is also not included in committed projects.
The representative of Discos argued that Kapco should be included in PAP on the basis of take and pay instead of take or pay, adding financial burden of this plant should not be passed to those Discos which are benefitting from it.
He said replacement of Kapco with new project for the purpose of constraint removal is subject to detailed study in TSEP as stated in IGCEP 2022.
The case officer acknowledged deviation in PAP and raised question on the document but also tried to divert discussion. Chairman NEPRA cautioned him against diverting things and making the issue more complex.
“It is unfortunate that I have mental blockage right now due to reliability of power system. If we approve the PAP without system stability then what is its benefit, we have to see the entire power system,” Chairman Nepra said, adding that without plants which ensure system stability, the plan is incomplete.
The representative of National Power Control Centre (NPCC), said that the system has to deviate from merit order for voltage stability. The Authority, however, was informed that the current PAP is not linked to existing IGCEP but next IGCEP will be drafted on the basis of PAP.
During the hearing, it was noted that total 12 projects will be included under proposed PAP, of which 10 projects will be baggasse-fired whereas two are hydropower projects by 2026.
The total committed capacity addition would 13,762 MW of which 2,280 MW will be based on local coal, 660 MW imported coal, 6,135 MW HPP, 1850 MW net metering, 433 MW solar, 100 MW wind, 42 MW baggasse, 1,000 MW cross border and 1,263 RLNG.
The representative of Shah Taj Sugar Mill criticized the NTDC on abrupt change in IGCEP every year which made things difficult for the sugar industry as it has wasted investment of sugar industry. He said, power acquisition department of NTDC is of the view that they would evacuate power after new IGCEP.
Wrapping up the discussion, Chairman Nepra said that questions from the Authority were towards understanding the issue.
“It is our responsibility to take any decision after our own satisfaction. PAP is being done for the first time in Pakistan. Prime objective to protect consumers interest,” he said.
Copyright Business Recorder, 2023
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