BTPL licence application still pending: Nepra directs IESCO to pass on net metering benefit to BT consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has the directed Islamabad Electric Supply Company (IESCO) to pass on benefit of net metering to the consumers of Bharia Town, without considering that Bahria Town (Private) Limited (BTPL) is not a licencee.

The NEPRA received a complaint from Engr Muhammad Saleem on behalf of the BTPL, wherein, it was alleged that net metering units are being injected into the IESCO system at the 132kV BTPL grid station; however, in blatant disregard to the applicable laws, the IESCO is not compensating BTPL for the exported units.

Furthermore, the BTPL maintained that it is providing the net metering facility to its consumers, whereas, the exported units are recorded in the billing meter and added to BTPL’s imported units from IESCO.

As a result, instead of benefiting from the exported units, the BTPL is incurring financial losses due to non-adjustment of these units and their addition to the imported units from IESCO.

In order to offset its financial losses, the BTPL began deducting 30 percent of the relief/exported units received from its consumers.

In light of the foregoing facts, the BTPL requested the installation of check/bidirectional meters for its connections and the netting off of the units exported to IESCO’s system, as BTPL was providing the benefit of net metering units to its consumers.

After going through the record and other evidence the authority has decided that IESCO’s blatant failure to comply with the directions of the authority has resulted in a highly concerning situation regarding power distribution and supply activities in Bahria Town.

According to the decision, the NEPRA is of the view that the authority reserves the right to initiate appropriate action in accordance with law against IESCO including but not limited to Section 28 of the NEPRA Act.

The regulator has further stated that since application of BTPL for grant of distribution licence is pending adjudication before NEPRA and till final decision of the matter, IESCO shall ensure that the electricity units exported from BTPL’s net metering consumers to IESCO, whether directly at 132kV or through the NTDCL system at 220kV, shall be immediately adjusted against the electricity supplied by IESCO to BTPL. This adjustment will also be applicable on past transactions to be retrieved through data downloading of the impugned meters installed at 220kV and 132kV system of BTPL. The data downloading shall be carried out by IESCO in presence of representative(s) of BTPL.

The decision further says that BTPL shall ensure that the benefit is passed on to its net metering consumers in accordance with prudent utility practices, including benefit for any previous unjust deductions. The parties are directed to submit compliance reports within 60 days for consideration of the authority.

However, Mathar Niaz Rana, Member (Tariff and Finance) has given a separate decision stating that while BTPL draws electricity from IESCO at a single point, it does not consume this electricity itself nor does it generate the distributed electricity.

“I concur with IESCO’s submission that BTPL is classified as a single power consumer under the C-3 tariff, with a load, exceeding 1 MW. Therefore, in my opinion, any net metering arrangement between BTPL and IESCO as decided by my learned colleagues; would be non-compliant with the existing regulations, he said adding that Authority may first consider developing a framework or amending the regulations, following the necessary legal procedures and stakeholders’ consultations, including with Discos to address this issue. This would address issues relevant to all housing societies, rather than making exceptions for any particular entity without supporting regulatory and legal provisions.

He has proposed that in the interim BTPL may devise a scheme to compensate its residents for any excess power generated by them.

Consequently, given that the such decision is likely to impact the consumer-end tariff of IESCO. He has suggested that a public hearing be conducted after framing issues in the light of IESCO, BTPL and other parties’ assertions to complete the due process before deciding the matter.

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