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The National Transmission and Despatch Company (NTDC) has failed to update a merit order, a list of power plants based on the cost of production since August 2015, which has raised eyebrows of many power sector experts in the country, claim experts.
They say the list was lastly posted on the company's website for July 2015, but since then it has failed to post the merit order for August, September and October. The company fortnightly issues a list of power plants based on the cost of production. The list is called the "merit order" that shows preferences of power purchases based on the cost of production.
"The lowest cost power plant is listed as number one and the higher cost plants are placed below according to cost they incur on power production. This merit order list is supposed to be fortnightly posted on the site," they added. The statement of generation against the merit order for August (which was obtained otherwise) shows that Kot Addu-1 with a dependable capacity of 325 megawatts was the third most used plant as per the despatch instructions by the company, despite having the merit order rank of 53.
The Engro Power having a capacity of 213 megawatts was the seventh most used one operating at 87 percent of its capacity, despite having the merit order rank of 57. The Liberty Power with dependable capacity of 196 megawatts used its 86-percent capacity and ranked eighth despite its merit order rank of 38.
Roush and Attock were given dispatch instructions priority of first and sixth (98 percent and 88 percent-capacity use, respectively) despite having the merit order ranks of 10 and 26, respectively. The Liberty with a capacity of 212 megawatts and the merit order rank of 2 has been given lower priority with only 85-percent capacity use. The Uch-2 power plant with a capacity of 388 megawatts is ranked fourth in the merit order but placed at number nine in the priority list, using only 86 percent of its capacity factor.
"The Genco Guddu CC 5-10 with a capacity of 530 megawatts has been placed among the last in the priority list despite having the merit order rank of 14," claimed the experts, adding that only a five-percent capacity of the plant was used. "The current despatch instructions are clearly against the National Power Policy 2013, which is to ensure the generation of inexpensive and affordable electricity for domestic, commercial and industrial use," the experts added.

Copyright Business Recorder, 2015

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