ISLAMABAD: While brushing aside the accusation of Private Power and Infrastructure Board (PPIB), National Electric Power Regulatory Authority (NEPRA) has advised it to consider the importance of its role as an Independent Auction Administrator (LAA) in the Competitive Trading Bilateral Contract Market (CTBCM) instead of engaging in unnecessary and unproductive blame games.
Replying to the letter of PPIB, NEPRA, which is still under strain subsequent to the recent episode of confrontation, said that it has noted with concern that PPIB, instead of focusing on completion of its assigned tasks in a constructive manner, is trying to shift the blame of its failures in meeting relevant timelines on other entities.
The said ill-advised letter of PPIB is not only misleading but also shows sheer lack of professionalism and will to play one's due role.
NEPRA further stated that being the regulator of power sector and a quasi-judicial body under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act), it expects better understanding of the issues and commitment towards its assigned tasks from PPIB.
In this regard, NEPRA said that it has noted that the PPIB has conceded that the actions assigned to it in the Implementation Roadmap (IR) approved by the Authority through determination dated November 12, 2020, are actually behind schedule and the same need to be fast tracked for timely implementation of the power market.
NEPRA says concerning the respective excuses provided by PPB in its letter, the correct factual position and directions of the regulators are reiterated as follows: (i) amendments in Power Policy 2015 and ARE Policy 2019 PPIB being the relevant government agency is expected to properly follow up the matter with the Power Division and the Federal Government.
Accordingly, copy of the letter was also endorsed to Power Division in this regard for kind information and necessary supportive actions; (ii) regarding finalization of the market-based Security Package Documents (SPDs), it is noted with serious concern that it took PPIB more than ten months to engage a consultant and get prepared a draft Gap Analysis Report (GAR). Despite the delay being purely on PPIB's part, it is now trying to shift the blame on the other entities including the Regulator.
NEPRA argued that the timeline provided by PPB for finalization, of this task is not acceptable as earlier intimated in NEPRA's comments. The Security Package Documents must be finalized and submitted to NEPRA (where required) for its approval prior to the COD of the CTBCM.
Gap Analysis Report (GAR) was required to be finalized by January 2021 as per the approved implementation roadmap of CTBCM. However, the first draft of GAR was shared with NEPRA in October 2021, i.e., after a delay of almost ten months whereas NEPRA had provided its detailed comments on the draft GAR within a short period of the receipt of the same considering the fact that PPIB, despite repeated requests, did not arrange any session of NEPRA with the Consultant to understand his point of view and accordingly provide feedback.
Further, without giving any consideration to the comments of the Authority, a revised draft of GAR was sent to NEPRA again on November 03, 2021 with an unrealistic timeline of providing its comments in one day.
Nevertheless, NEPRA has provided its initial response to the revised report through email of November 04, 2021. Therefore, PPIB has advised to desist from making any false claims in this regard and focus on finalization of the GAR at the earliest so that Security Package Documents are accordingly finalized and made available well before the COD of the CTBCM, i.e., April 2022.
In regard to delay in submission of IAA Registration Application, though the relevant provisions of the NEPRA Act are self-explanatory, even if there was any confusion or any guidance in the matter was required, the same could have been sought from NEPRA. It is also important to highlight that in a series of interactions with the Regulator, PPIB always pointed to its lack of preparedness for filing the Registration Application rather than attributing the same to the absence of regulations.
Therefore, the contention of the PPIB that the delay of almost 3 months in filing of registration application under Section 25A of the NEPRA Act by PPIB was due to the absence of the relevant regulations is unsubstantiated and not justified, says NEPRA.
NEPRA maintained that as the Regulator of the Power Sector it will continue to monitor and highlight the delayed actions of the relevant implementing entities to ensure implementation and operationalization of CTBCM as per the given timelines.
The PPIB, rather than unnecessarily engaging itself in unproductive blame games, should consider the importance of its role as an Independent Auction Administrator (LAA) in the CTBCM and accordingly expedite the completion of relevant tasks in a timely manner in order to avoid any adverse impact on the joint commitment of CTBCM operationalization by April 2022, to none other than Prime Minister.
Copyright Business Recorder, 2021
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