The regulator has made the decision on an application submitted by ST&DCPL on April 11, 2019 for the grant of transmission licence as a PGC in terms of Section-18A of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. The authority has got feedback from all relevant stakeholders before grating the license to ST&DCPL.
In response to the authority's formal request, feedback was submitted by six stakeholders including Engro Energy Limited (EEL), Energy Department Govt. of Sindh (EDGoS), Central Power Purchasing Agency (Guarantee) Limited (CPPAGL), Franklin Law Associates (FLA), Energy Wing Ministry of Planning, Development & Reform Govt. of Pakistan (EWMPGoP) and National Transmission and Dispatch Company Limited (NTDC).
The public hearing in the matter was held on September 04, 2019 at main office of NEPRA at Islamabad wherein representatives of different organizations participated. These included the representatives of ST&DCPL, CPPAGL, NTDC, Government of Punjab (GoP). Minster for Energy lmtiaz Sheikh also attended and gave a detailed point of view of the GoS in the matter. The team of ST&DCPL gave a detailed presentation on the background of the case and also elaborated the point of the company on different issues frame in the matter.
EEL submitted that it believes that economic prosperity of the country is dependent on the competitiveness of our industry requiring increased efficiencies and lower cost of production. EEL is in favor of granting a licence to ST&DCPL to act as a PGC.
EDGoS stated that the Government of Sindh (GoS) has incorporated ST&DCPL with a mandate to construct, own, operate & maintain transmission lines on commercial basis. It said the wind corridor of Jhimpir has a potential of about 50,000MW but is only contributing 1,185 MW to the National Grid due to transmission line constraints.
CPPAGL remarked that the required Eligibility Criteria for PGC has not been prescribed by the Federal Govt. as stipulated in Section-18A of the NEPRA Act. According to the said provision, only one licence for the PGC is to be issued for each province therefore, the selection and licensing of such entity should follow a competitive process.
FLA is in favor of granting a transmission licence to ST&DCPL for provincial grid to set up its own transmission network and serve the bulk power consumers in the bilateral market with affordable and reliable electricity.
EWMPGoP while commenting in the matter supported the establishment of PGC however, submitted that the authority should carefully look into the manpower capacity of ST&DCPL.
It was stated that the details submitted in the petition shows that personnel when appointed in ST&DCPL were short of required experience. It is apprehended that similar situation may occur in case of PGC.
NTDC submitted that it is sending its preliminary objections/comments in the matter including (a). Eligibility Criteria. The application of ST&DCPL is liable to be rejected solely on the ground that the same fails to meet the basic eligibility criteria that is required under the law. Regulations 3 (h) of National Electric Power Regulatory Authority Licensing (Application and Modification Procedure) Regulations, 1999 (the "Regulations") provides ..."(h) in case of a license for a new facility or system, a feasibility report in respect of the project, specifying in detail: (i). The type, technology, model, technical details and design of the facilities proposed to be constructed, developed or installed; (ii). The expected life of the facility or the system; (iii). The location of the facility or the system, or the territory with outer boundaries within which the facilities or the system is proposed to be installed and operated by the licensee, along with maps and plans' and (iv). The type and details of the services proposed to be provided." The Application under consideration does not provide the mandatory feasibility report specifying the details as required under the above mentioned Regulations. (b). Also, the Application of ST&DCPL fails to comply with the criteria provided under Regulation 3(g) (b) of the Regulations which requires the transmission license applications to provide the type, technology, model, technical details and design of the facilities proposed to be acquired, constructed, developed or installed, a territorial map of the service area proposed to be covered and particulars in respect of the availability, sources, rates and evidence of commitments from the sources of electric power.
NTDC does not support the petition of ST&DCPL for issuance/grant of provincial transmission license. Therefore, it is humbly prayed that the Application under reply may kindly be rejected.
However the Authority approved the grant of Transmission License to ST&DCPL to act as PGC for the province of Sindh on the terms and conditions set out in the license annexed to this determination.
It said the grant of this license will be subject to the provisions contained in the NEPRA Act, relevant rules, regulations framed there under and other applicable documents.