• Bulk consumers can buy power from private suppliers.
• Government for auction surplus electricity for industries.
• Nepra to put wheel fees for the private buyers.
  

Islamabad: Authorities are considering reducing wheel taxes to RS10-12 per year. Unit to ensure success with the competitive trading car therapy contract market (CTBCM) for private power trading, The news reported Monday.

This adjustment is only possible when the stranded costs are excluded.

“The authorities want to establish wholesale private power market before March-April with wheel taxes acceptable for buyers and sellers of electricity,” said a senior official.

Ideally, he added that the Wheeling taxes should be on RS6-7 per year. Unity, but the government wants cross-sub-subsidity of RS5-6 per unit. Unit as part of the wheel tax.

But if the 50% burden of the stranded costs is shared by the government and 50% of consumers, Wheeling taxes would hover to RS17-18 per year. Unit from the previously proposed to RS27-32 per Unit. Here, the question arises as to why consumers under the private power market regime pay for the sins they did not commit.

According to standard costs, the government wants consumers to pay capacity payments against 45,888 MW by knowing that electricity consumption is down by 2.4%.

The ironic part of it is that the government also adds more power production due to the capacity payments would also increase, but consumers are not responsible for the existing and new additions to power production.

“We are also working on the creation of Wholesale Private Power Market before March-April to be followed by the retail market. When CTBCM is in place and becomes functional, the government would not buy electricity from the IPPs that signed the revised contracts on a roof and pay basis. They would be free to participate in CTBCM. “This can be a paradigm shift in the existing power sector structure.

During this competitive regime, there will be a system of multi-sellers and multi-bogers of electric power. However, buyers pay transmission and distribution of system charges also for the electricity they will act bilaterally.

Currently, the power sector investments are dominated by the government, which also owns the power plants and sells electricity to end consumers during a monopoly structure through its discos, which has control over the network and the utilities.

Consumers have no choice other than buying electricity from the state -owned distribution companies.

So under the new competitive market implementation, the electrical power consumers will be able to buy electricity from any private supplier, dealers and generational companies for the electrical power prices that have been bilaterally agreed by parties without NEPRA provision involved and after including the wheel tax as determined by NEPRA for the use of transmission and distribution.

In addition, the government is in the process of cutting its plan to sell the cheaper excess electricity to bulk consumers at auctioned prices for 2-3 years.

“According to the plan, we will first set the reference price for electricity, and interested parties would be asked to bid for excess electricity no less than the reference price.

“The officials of the Central Power Calk Agency (CPPA) and National Transmission Dispatch Company (NTDC) are also currently working on the implementation mechanism and the reference cost.

“This will also help tackle the monster with capacity payments. The country’s installed capacity has reached 45,888 MWS. The highest demand for summer is 29,000 MW, but the system is unable to transfer the 29,000 MW’s electricity, rather it is capable of transmitting 26,000 MW’s electric power. The average demand per However, the month is 11,000-12,000 MW. We need to increase the demand for grid electricity throughout the country. “The largest client can be the industrial sector to get excess power at an auctioned price for 2-3 years.

The country has cheaper electricity in the southern part of the country, which cannot be transferred to the North – Punjab, the load center, mainly due to the transmission restrictions, but the government pays capacity payments for even cheaper power available but cannot be evacuated.

So excess power can be offered clients at auctioned prices, and that’s how the government would reduce the burden of capacity payments and excess electricity would be brought to use.