National Electric Power Regulatory Authority (Nepra) at a recent meeting of federal cabinet criticised the government for not implementing power sector reforms that began in the nineties in letter and spirit and not improving governance in NTDC, Discos and Gencos. The regulator, unhappy with the policymakers for not allowing it to work independently, gave an overview of power sector along with State of the Industry Report 2016.
The government began power sector reforms in the late nineties with financial support from the World Bank and Asian Development Bank including separation of water sector from power sector. However, the reforms in power sector were not implemented due to a strong bureaucratic lobby as well as those sitting in the helm in Pepco and the Discos.
According to insiders, the power sector is being directly controlled by senior bureaucrats (baboos) of Water and Power Ministry. Nepra in its presentation briefed the cabinet that 55 percent 220 kV and 44.30 percent 132 KV transmission lines are overloaded: in Punjab 64 percent 220 KV and 41 percent 132 KV are overloaded followed by Sindh''s 35 percent 220 KV and 47.50 per 132 KV, KPK 57 percent 220 KV and 47.60 132 KV and Balochistan''s 58.40 percent 132 KV.
According to the regulator, the main transmission issues are as follows: (i) overloading of power transformers and grid stations; (ii) delay in completion of transmission projects leading to inadequate power evacuation; and (iii) lack of maintenance of transmission lines/ grid stations resulting in tripping/ blackout.
Highlighting distribution system constraints, Nepra said that in Punjab 34.05 percent 11Kv feeders and 12.50 percent distribution transformers are overloaded. In Sindh, 31.40 percent 11 KV feeders and 21 percent distribution transformers followed by KPKs 52.10 percent 11 KV feeders and 31.90 percent distribution transformers. In Balochistan, 34.7percent 11 KV feeders and 16.20 percent distribution transformers are overloaded. Overall, 36.20 percent 11 KV feeders and 15.60 percent distribution transformers are overloaded in the country.
The key distribution issues are as follows: (i) overloading of power transformers, feeders and distribution transformers; (ii) low voltage problems; (iii) high transmission and distribution losses; (iv) Discos receive less funding than the amount allowed by Nepra; (v) lack of capacity of Discos to utilise the allocated amount; and (vi) poor safety standards result in a high number of fatal incidents in all Discos.
Nepra maintains that it has introduced regulations to regularise distribution of power between Discos and housing societies/high rise buildings as well as its net-metering regulations, 2015 whereby 149 licences have been granted having an accumulated capacity of 4.96 MW.
The cabinet was also informed that special purpose transmission licence to Fatima Energy Limited, Sindh Nooriabad has been granted whereby a private entity or a province can construct transmission lines. According to the presentation, Nepra also took initiatives on its own for improvement in the power sector which includes interconnection facilities for renewable generation facilities, regulations, 2015 whereby the issue of interconnection has been resolved.
The regulator also approved regulations ensuring open access to bulk power consumers. Through Nepra''s announced upfront tariff under upfront tariff regime an overall 13,540 MW for different technologies has been opted.
The regulator also introduced Competitive Bidding regime for Renewable Energy (RE), short-term Independent Power Producers (IPPs) with a capacity of 181 MW on the basis of an upfront tariff. Upfront tariffs for Captive Power Plants ie baggase, coal, RFO and gas have been issued whereas a final decision on solid waste management and biomass power projects will be issued shortly.
The regulator has recommended to the government to expedite efforts for timely completion of planned power generation projects, specifically to ensure projects under the China Pakistan Economic Corridor (CPEC). According to Nepra, transmission line''s availability for evacuation of power from the planned power generation projects must be ensured to match the timeline of generation projects, adding that constraints in the NTDC/Discos networks are considered a major concern as delivery of power to end consumers cannot be ensured unless Discos make efforts on a war-footing to strengthen their networks.
As the country has opted to establish coal-fired power projects, Nepra has suggested that for the protection of environment from the emissions by coal power projects the relevant agencies must adopt aggressive monitoring before and during operation of such power plants.
Pointing out lapses in completion of power projects, the regulator has recommended that infrastructure for coal transportation and R-LNG are potential hotspots on which success of the revival of power sector rests. Therefore work on these areas must be started immediately and their availability ensured. Encouraging renewable energy projects, Nepra argues that clarity of policies on induction of renewable energy is required along with encouragement of distributed generation for renewable energy.