The Ministry of Water and Power has turned down National Electric Power Regulatory Authority's (Nepra) determination asking independent power producers (IPPs) to construct transmission lines themselves, sources in Nepra told Business Recorder here on Monday. "Nepra be advised to remain within the domain of power policy 2002 and amend its determination of Power Purchase Agreements (PPAs) with the power purchasers on mutually agreeable terms for construction of transmission line," sources quoted Secretary, Water and Power, as saying in a letter to Cabinet.
Nepra, while determining tariff for National Transmission and Dispatch Company (NTDC), had said that construction of transmission line was the responsibility of IPPs, or distribution companies (Discos), rather than Wapda's generation companies, sources said.
They said the Ministry of Water and Power was of the view that this decision contravened the Power Policy of 2002 where IPPs were supposed to supply power at bus-bars of their station.
This determination, the Ministry believes, would put undue burden on the private power producers to mobilise huge amounts as construction of transmission line is not the domain of IPPs.
"Since the assets of transmission lines are ultimately being reflected on the balance sheet of NTDC, the settlement of account between NTDC and IPPs will be cumbersome as maintenance of transmission line is usually not possible by the IPPs," the Secretary argued.
Asked when Nepra would respond to the letter of Water and Power Ministry, sources said that this controversy may take months as the Secretary has favoured IPPs out of the way.
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