The National Electric Power Regulatory Authority (Nepra) is likely to allow the establishment of Sindh Transmission and Dispatch Company Limited (STDC) without any 'business plan' after the National Transmission and Dispatch Company (NTDC) opposed the move vigorously. This was observed at a public hearing in Nepra held Wednesday on a petition filed by the STDC. Sindh government's team was represented by its Energy Minister Imtiaz Shaikh, the brother of Member Sindh, Nepra Rafique Ahmed Shaikh, Secretary Energy, Mussadak Khan, legal expert, Barrister Asghar Khan and other officials.
Sindh's team gave detailed arguments in favour of its proposed company and even attacked the NTDC for opposing the establishment of its counterpart at the provincial level.
However, the legal expert of Sindh government argued that a province can establish any such company in accordance with the Constitution of Pakistan.
Sindh Energy Minister Imtiaz Shaikh who is also under the radar of the National Accountability Bureau (NAB), in his remarks stated that the province was facing serious issues with the NTDC in relation to evacuating power from the newly-established wind power plants in the province. He argued that STDC would not be a competitor of the NTDC but a junior company and continue to seek guidance on technical issues. He said that the estimated capacity of wind power in Sindh is about 50,000 MW.
NTDC Managing Director Zafar Abbas opposed the move whereas the Planning Commission gave its consent with certain conditions. Zafar maintained that clean energy should be included in the system but no mechanism is available for provincial grid company.
"We are not opposing the establishment of provincial grid company but actually there is no mechanism for this purpose. Provincial government first fulfills legal aspects," he added. The CPPA officials apologized for "inappropriate" comments about the authority of the CCI.
The comments of Chairman Nepra and other members indicated that the regulator is willing to grant the licence to establish transmission and dispatch company at the provincial level with some assurances from the provincial government with respect to NTDC and power Distribution Companies (Discos). However, questions were also raised with respect to the capacity and capability of provincial government to run such a company.
The technical expert of the proposed STDC assured the regulator that the company would have transmission experts who have worked in KE and NTDC. However, when Chairman Nepra enquired about the business plan of the proposed company, he replied that they have not prepared any such plan, but added that the company is registered as a private company with the SECP and with over 50 per cent shares of provincial government it would act as a public limited company.
After hearing arguments from the concerned stakeholders, Nepra reserved its judgment and gave 15 days for written comments from the stakeholders and members of the public.
Later on, talking to media, Sindh Energy Minister Imtiaz Shaikh said that NTDC and CCPA-G have established hegemony due to which power projects of Sindh are facing delay, adding that "Baboos" of Islamabad are creating hurdles in projects of Sindh government. He said 15 projects of 1,200 MW of the Sindh government are blocked, with an estimated investment of about $ 2 billion.
He further stated that production of inexpensive electricity is being blocked, adding that Islamabad's Baboos will be defeated in the Nepra.
In reply to a question, he stated that if the issue is not resolved in the Nepra, provincial government will raise it in the Council of Common Interests (CCI). He argued that the Nepra has powers to grant licence to Sindh for establishment of STDC.
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