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ISLAMABAD: The Cabinet Committee on Energy (CCoE) has constituted a special panel headed by Caretaker Finance Minister Dr Shamshad Akhtar, to deliberate on the issue of wheeling charges in a holistic manner and suggest viable way forward as the scheme might hit snags in case tariff/ wheeling issue was not resolved, official sources told Business Recorder.

Sharing the details, sources said, Power Division briefed the CCoE on November 22, 2023 that the ECC had approved a plan for development of competitive power market in Pakistan in its decision April 30, 2015.

A detailed design and plan for Competitive Trading Bilateral Contracts Market (CTBCM) was approved by NEPRA and subsequently endorsed by CCoE and Cabinet.

UoSC/wheeling charges: Nepra reluctant to approve ‘heavy cost’

CTBCM design features and plan were also endorsed by Council of Common Interests (CCI) under National Electricity Policy 2021. National Electricity Plan 2023 was approved on August 9, 2023.

Eligibility criteria rules were also approved by Federal Government on July 26, 2023 to complete the key requirements before operationalization of bilateral electricity trading market in the country.

In order to proceed further as per approved design and plan, CPPA-G was granted the Market Operator licence for a term of 20-years by NEPRA through its determination of May 31, 2022.

Along with the licence, NEPRA also approved the Market Commercial Code (MCC) and a Test-Run Plan comprising of twenty-four action items assigned to different power sector entities.

The purpose of test run was mainly to simulate the multi-buyer transactions as raid down in MCC under actual and rear conditions, without imposing any financial obligations, to recommend improvements.

Copyright Business Recorder, 2023

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Waheed ud din Dec 16, 2023 05:09pm
Be careful before starting the business of wheeling charges. This new business with constrained circumstances like in Pakistan will lead to another type of crisis unseen in Pakistan. We have mostly foreign IPPs who could be pressurized to reduce energy charges of their generation after the expiry of their licenced period. In the new setup with a policy of wheeling mechanism, they will not be obliged to sell their power to power purchaser and will be free to sell their energy to big customers any where in any corner of the country. What Pakistan had experienced in past in the form of private IPPS, would be duplicated in deciding the wheeling charges. Close this chapter of wheeling charges till power generation is 100 % loacal/national interprenuer.
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