ISLAMABAD: The Cabinet Committee on Energy (CCoE) is all set to consider Final Test Run Report of the long-awaited Competitive Trading Bilateral Contracts Market (CTBCM) for onward submission to the National Electric Power Regulatory Authority (Nepra) for final approval, well informed sources in told Business Recorder.

CCoE headed and to be chaired by Minister for Power and Petroleum Muhammad Ali will also discuss the circular debt report for September 2023. There is also a possibility that Power Division may also share circular debt numbers of October 2023, which were finalised yesterday (Tuesday).

Monthly report sheet of power plants operating to ensure security constraints economic dispatch for September 2023 as grid code and monthly report in the progress towards implementation of CTBCM is also part of the agenda.

Nepra not happy over ‘tactics’ aimed at blocking CTBCM

Sharing the details, sources said that on 30 April 2015, Economic Coordination Committee (ECC) of the Cabinet approved a plan for development of competitive power market in Pakistan.

A detailed design and plan for CTBCM was approved by Nepra and subsequently endorsed by CCoE and Cabinet. CTBCM design features and plan were also endorsed by CCI under National Electricity Policy 2021, National Electricity Plan 2023 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 ahead 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 laid down in MCC under actual and real conditions, without imposing any financial obligations, to recommend improvements.

The Test-Run for 14 months has been successfully completed. Test-Run covered readiness/ testing of the IT systems for trading, MCC and allied procedures. The process also included stakeholders’ consultations and capacity building of 14 entities.

Key findings of Test-Run included some adjustments in MCC and recommendations to Regulator, with respect to market governance and tariff, and the same have been made part of Final Test-Run Report.

According to sources final Test-Run Report is required to be submitted to Nepra for approval. An international consultant was also hired for vetting the report and IT systems to ensure confidence in the results of Final Test Run Report.

Moreover, CPPA-G also carried out consultation with stakeholders on the Final Test Run Report, who expressed their complete ownership and readiness for undertaking their respective roles in multi-buyer market operations. CPPA-G Board in its meeting held on September 15, 2023 reviewed the Final Test-Run Report, Consultant’s Review Report and resolved that the CCoE may be apprised about CTBCM progress and then the Test-Run Report may be submitted to Nepra for its approval.

The sources further stated that CPPA-G has prepared progress report on the implementation of CTBCM covering overall readiness of the power sector entities to undertake the market operations and the status update of the Test-Run.

Considering successful Test-Run and completion of various actions under CTBCM design and plan as approved by CCoE in 2021, the Final Test-Run Report duly vetted by international consultant and discussed with stakeholders will be submitted for consideration of CCoE by the Power Division with the request to authorise it to submit the report to Nepra for final approval.

The summary was circulated to Nepra, CPPA-G, NTDC, PPMC, PPIB/A EDB and Finance Division for comments. Nepra, Finance Division, CPPA-G and NTDC have offered their comments whereas Power Planning and Monitoring Company (PPMC) and PPIB may share comments during the CCoE meeting.

Copyright Business Recorder, 2023