ISLAMABAD:
Amid the conflict between Iran and the United States, the National Electric Power Regulatory Authority (Nepra) approved additional imports of electricity from Iran to meet the demand in Balochistan.
According to one formula, Pakistan will have to pay 9.2 US cents for each unit (kWh) of electricity to Iran if the price remains below US$100 per barrel. The unit cost could rise to 11 cents if international oil prices exceed $100 per barrel.
The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) submitted an application to the authority on September 12, 2023, seeking approval of the tariff for the supply of 104 MW, along with an additional 100 MW of electricity from the Iranian state-owned power company TAVANIR.
CPPA-G had submitted the application pursuant to a decision of the Economic Coordination Committee (ECC) dated August 7, 2023. The application included duly signed amendments related to revisions in supply agreements and tariff structure.
CPPA-G subsequently submitted further submissions on December 28, 2024, including detailed information on the proposed amendments and their salient features.
The Economic Coordination Committee (CEC) of the Cabinet, considering the summary presented by the Energy Division, approved the proposal in August 2023.
Authorized the execution and submission to the authority of amendments between CPPA-G and TAVANIR, empowering CPPA-G to act as power purchaser on behalf of the Government of Pakistan for the import of electricity.
Subsequently, CPPA-G submitted the present application before the authority on September 12, 2023, seeking approval of a tariff extension for the existing supply of 104 MW (as already determined by the authority) and approval of the tariff for the additional supply of 100 MW agreed under the amendments.
In a decision, the energy regulator expressed concern that CPPA-G has repeatedly followed a pattern of submitting applications for approval of tariff extensions and contract modifications with significant delays, often after the relevant period had already begun or, in some cases, had substantially elapsed.
In the present matter, CPPA-G submitted the request for approval of a tariff extension in September 2023, while it refers to the continuity of supply from January 2022 until December 31, 2024.
The energy regulator directed CPPA-G, QESCO, ISMO and NGC to jointly develop and submit a comprehensive and coordinated roadmap for the electric power supply plan for the regions concerned within six months of the issuance of this order.
This roadmap will be based on a holistic study and will include, among other things, a detailed evaluation of the reliability and security of the system, including economic evaluation and risk mitigation measures.
He also led the identification and development of indigenous, safe, viable and diversified supply options to ensure long-term energy security.
Nepra also calls for a prudent and rationalized needs assessment, including demand growth and load forecasting; and a clear institutional coordination mechanism for the development and implementation of the proposed plan.
