ISLAMABAD:
Amid the Iran-US conflict, the National Electric Power Regulatory Authority (Nepra) has approved additional electricity imports from Iran to meet demand in Balochistan.
According to a formula, Pakistan must pay 9.2 US cents for each unit (kWh) of electricity to Iran if the price remains below $100 per barrel. The price per unit could rise to 11 cents if international oil prices exceed $100 per barrel. barrel.
The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) submitted an application to the authority on September 12, 2023 for approval of the tariff for the supply of 104 MW, along with an additional 100 MW of electricity from Iran’s state-owned electricity company TAVANIR.
CPPA-G had submitted the application in accordance with a decision of the Economic Coordination Committee (ECC) dated August 7, 2023. The application contained duly signed amendments regarding revisions to the supply arrangements and tariff structure.
Subsequently, the CPPA-G submitted further submissions on 28 December 2024, detailing the proposed changes and their salient features.
The Economic Coordination Committee of the Cabinet (ECC) approved the proposal in August 2023 while considering the brief from the Power Division.
It approved the execution and submission to the Authority of amendments between CPPA-G and TAVANIR authorizing CPPA-G to act as power purchaser on behalf of the Government of Pakistan for import of electricity.
Later, CPPA-G submitted the instant application to the authority on 12 September 2023, seeking approval of an extension of the tariff for the existing supply of 104 MW (as already determined by the authority) and approval of the tariff for the additional 100 MW supply agreed as per the amendments.
In a ruling, the power regulator expressed concern that CPPA-G has repeatedly followed a pattern of submitting requests for approval of rate extensions and contractual changes with significant delays, often after the relevant period had already begun or, in some cases, substantially expired.
In the present case, CPPA-G submitted the request for approval of tariff extension in September 2023, whereas the same applies for continued supply with effect from January 2022 to 31 December 2024.
The power regulator directed CPPA-G, QESCO, ISMO and NGC to jointly develop and submit a comprehensive and coordinated electricity supply plan roadmap for the affected regions within six months of the issuance of this order.
This roadmap shall be based on a holistic study and shall include, but not be limited to, a detailed assessment of system reliability and security, including economic evaluation and risk mitigation measures.
It also directed the identification and development of indigenous, secure, viable and diversified supply options to ensure long-term energy security.
Nepra also calls for prudent and rationalized demand assessment, including demand growth and load forecasting; and a clear institutional coordination mechanism for the development and implementation of the proposed plan.
