Post on 04-Jun-2018
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NEPRA
Functions and Activities
Briefin
toUSEA
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ESTABLISHMENT OF NEPRA
In order to reform the Pakistan power sector a strategic plan forrestructuring, reforming and privatization of WAPDA was developed by
.
Council of Common Interests (CCI) in 1993.The strategic plan recommended corporatisation and privatization of
n o separa e enera on an s r u on ompan es.
The Prime Minister directed the implementation of the strategic plan for
WAPDA as approved by the CCI through P.Ms directive dated 24-10-1998. The directive of the P.M included the following.
,sector, which meets the requirements of the consumers in thecheapest and the most efficient manner. Ensure that the
vision.
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ESTABLISHMENT OF NEPRA
The strategic Plan included the creation of an Independent
regulatory Authority to provide a level playing field to all the stake
holders and to assure prospective investors that an independent
agency would be objectively deciding on regulatory matters of power
NEPRA was established by the Government of Pakistan in January.
NEPRA was formally notified through promulgation of the
Regulation of generation, Transmission and Distribution of ElectricPower, as Act No. XL of 1997 on 13th December 1997.
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Constitution of the Authority
The Authority comprises of a Chairman,appointed by the Federal Government, and fourmem ers a so appo n e y e e eraGovernment on the recommendations of the
.
The Chairman and the members are appointed
similar term provided that a member other than
already attained the age of sixty five years.(Section 3 of the NEPRA Act)
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Organogram of NEPRA
Chairman
Member
Standards
Member
Licensing
Member
Tariff
Member
Privatization
Tariff Consumer
cens ngWing & ITWing
Affairs, Coord& Legal
an ar sWing r va zaTion/Wing m n s ration & HReg s rar
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Powers and functions of NEPRA under the Act
a) Grant licenses to Generation, Transmission or Distribution
services.
, , .
c) Prescribe and enforce performance and investment standards.
.
e) Ensure continuous, efficient and affordable supply of electric
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Act/Rules/Procedures
(Framed by NEPRA)
,Power Act (XL of 1997). Enacted by Parliament in December 1997.
Tariff Standards and Procedure Rules, 1998.
, ,
Licensing (Distribution) Rules, 1999. Licensing (Generation) Rules, 2000.
Fees and Fines Rules, 2002.
Consumer Eligibility Criteria (Regulations), 2003.
Resolution of Dis utes between IPPs & other Licensees 2003
Performance Standards Distribution Rules 2005
Performance Standards Transmission Rules 2005
2005
Grid Code, Distribution code 2005
8
onsumer erv ce anua
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Players in the Power Sector
,Privatization
Commission
Companies
Regulator,
Chambers of
Commerce &
Industry.
Public Bodies,
Representatives,
9
IFIs-
Area residents
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Present Status
a) Formation of Rules, Regulations, Procedures
b) Grant Licenses
c) Tariff-----MYT( KESC, FESCO), IPPs , GENCOs,Wind.
p ront tar .----- or erma n s
e) Standards ---- Monitoring of Standards. -
g) Tribunals
.
SAFIR, SARI, USAID, World Bank, USEA,
PURC, NARUC, Of em, TERI/CERC,
10
South Africa, China
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PAKISTAN Power System
MARDANWARSAK
TARBELA(240)
(3408)GAZI BAROTHA
BANNU
DAUDKHEL
NEW RAWAT
I.S.P.R
MANGLA
GAKHAR
SAHOWALA
SABA
(1000)CHEP(184)
CHASNUPPGATTI
BURHAN
(132)
. .
RAVI
JAPAN
KEL
N.ABAD
YOUSAF WALA
VEHARI
KAPCO
ROUSCH
AES
(132)
(131)
(355)
(1348)
(695)(140)
BUND RD:
HCPC
SIBIQUETTA
LAHORE
K.LAKHPAT
K.ADDU S:ROAD
MULTAN
SEPCOL (117)
FKPC 157UCH
N.G.P.S
M.GARH
GUDDU
LIBERTY
500 kV Grid Station
500/220 kV Grid Station
(195)(1350)(548)
(1655)
(229)
GUDDU
DADU
HALA RD:
LAKHRA
KOTRI
HUBCO
220 kV Grid Station
Hydel Power Station
Thermal Power Station
IPPs
Power Station 500 kV
(150)
(850)
(174)(1200)
TAPALG.AHMAD
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KDA-33(KESC)
Power Station 220 kV
Power Station 132 kV
500 kV T/LINE
220 kV T/LINE
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Overall Country System Installed Capacity and Units generatedOverall Country System Installed Capacity and Units generated
(FY(FY 20052005--06)06)
(KESC) Thermal
1756 (KESC)
(KESC)
Thermal
9066
11%
Installed apacity 19450 MW enera on
(Wapda) Hydro
Electric 6499
34%
Available from IPPs
& Nuclear462
2%
9% Available from IPPs
& Nuclear
1876
2%
(Wapda)
Hydro Electric30862
34%
(WAPDA) Availabe
from IPPs &
Nuclear
5833
30%
(Wapda)
Available from IPPs
& Nuclear
31090
(Wapda) Thermal
4900
25%
(Wapda)
Thermal
22508
26%
27%
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HYDEL THERMAL MIX
OilHydel
6499 MW
(34%)
(34%)
Nuclear
Total 19450 MW
452 MW(2%)
Coal
150 MWGas
13
(1%)5815 MW
(30%)
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W PD s RESTRUCTURING
N T D CT D C 1 )
WAPDA HYDEL
DISCOs
POWER WING
GENCOs( 9 )( 4 )
TRANSMISSIONGENERATION DISTRIBUTION
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Thermal Power
Stations
Grid Station/Trans. Lines
Operation & MaintenanceDistribution Companies
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Generation Business in Pakistan
a) Ex WAPDA GENCOS--- 4 Nos All Licensed
b) WAPDA Hydel ----- 1 Comprehensive License
----.
d) IPPs Pursuant to 2002 P.P----- 5 Nos all Licensed (COD not yet)e) KESC generation ------ Licensed
---------- os a cense
g) Distributed generation---------- 7 Nos all Licensed
h) Wind Energy --------------------4Nos (3 Licensed)
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Transmission Business in Pakistan
a) NTDC-------
a) KESCTransmission-----
Process
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a) DISCOs-------- 8 Nos all Licensed with Individual tariffs.
s r u on us ness n a s an
a) PPP
b) Distribution Margin
c) Average Sale Rate
b) KESC----------KESC Distribution License
a) PPP--- KESC own Generation, NTDC, IPPs
b) Distribution Margin
c verage a e ate
d) Consumer End Tariff
c) SPPs-----------34 Nos Out of this only 9 Nos qualify for the grant of a distribution license.
a Licence ranted.
b) Consumer End Tariffs notified
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Distribution Business in Pakistana BPC operat ve at t e t me o D stt L ce------
All Such cases being identified and notices
bein issued. 1st hearin of its kind held in
May 2007 for grant of distribution License toBahria Town Housing Colony (an Inset H/S
.
a) Separate distribution License Prepared
b) Will have a separate tariffc e requ re to meet a tan ar s
Codes
b) Policy on the Eligibility Criteria for such
INSET entities being developed.a) This will include the Principle of
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applications.
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Post Privatized DISCOs/KESC
WAPDA Carporatized into EIGHT Discos (Distribution Companies) One Disco (FESCO) offered for privatization
Individual Tariffs for each Disco notified in 2007 after three years of delay
Can now plan their own development plans and sign loan agreements. Have the power to sing bi-lateral with any GENCO for meeting its excess capacity
KESC
Privatized in 2005 (taken over by the new management) KESC Distribution se arate licensed
Has its own Consumer end tariff
The total tariff including Generation plus Transmission and Distribution is a MultiYear Tariff for a control period of Seven Years.
Control Period 7 years
As per the mechanism KESC DISCO break even after three years with losses downfrom 40% to 25%
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Privatized KESC will invest around US$ 500M in KESC Distribution only
Any un notified amount above Consumer end tariff will be paid by the Govt assubsidy
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Consumer Class Wise Rates Cents/kWh (Previous )Consumer Class Wise Rates Cents/kWh (Previous )
1-100 Units Residential
Up to 50 Units (Residential)KESC
Above 1000 Units (Residential)
301-1000 Units (Residential)
101-300 Units (Residential)
WAPDA
Bulk
Industrial
Commercial
-
Average Sale Rate
KESC &WAPDA
KESC 7 7 8 11 9 13 13 10 6 4 2
Average
Sale Rate
KESC
&WAPDA
Agricultral
Tubew ellsBulk Industrial Commercial
Above 1000
Units
(Residential)
301-1000
Units
(Residential)
101-300
Units
(Residential)
1-100 Units
(Residential)
Up to 50
Units
(Residential)
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WAPDA 7 7 7 10 9 12 12 10 6 4 2
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ELECTRICITY TARIFF COMPARISON
16
12
10
Residential
6Industrial
2
4
0 Indones ia FRANCE INDIA Pak is tan Turk ey United States U.K
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LOSSES DISCOs/KESC
Total Consumers Served 17.5MillionLosses
2005
Losses 2000--%S No
10.49.5IESCO2
10.210.5LESCO4
1112.7GEPCO3
2034MEPCO6
12.813.7FESCO5
15.322QESCO8
39.539HESCO7
23
3436KESC9
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Year Wise Progress
(TARIFF)
07----041998
TotalOthersDeterm nat on(WAPDA/KESC/GENCOS/NTDC/DISCO s)
Year
030102200004----041999
0701062002
13----132001
3303292004
0801092003
0501252006
2419626170Total
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Year Wise Progress
TOTALWAPD
A
HYDEL
IPPs/
Wind
CHAS
NUPP/
kannu
GENCOs
& KESC
NTDCDISCOsSPP
s
Year
--------------------------------2000
17------------040107052002
--------------------
180104----------------132004
----------------
07072006-------------
25
442007
7901300205010931Total
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Safeguarding interests of Consumers
Unrestricted self Generation & Bilateral Contracts.
Affordable tariff for all categories.
Life line consumers
Redressal of Complaints:i) Utility services obligation
iii) Consumer Affair Division at NEPRA attended/rectified over
1800 Nos complaints since inception.iv) Court of Law
Representation through Consumer/human rights
Education/Information throu h media/website.
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Complaints Handling
Complaints redressed through NEPRA ConsumerComplaints AddressedComplaintsYear
Affairs Division under Complaint Redressal
mechanism/ POI
through Provincial
Offices of
Inspection/DISCOs
Recieved
65- Attock Cement Vs KESC1722372003
361511872002
116- Iftekhar Ahmed Vs IESCO, PWD H/s
Vs IESCO, D.s Textile Mills Vs LESCO c
2383542004
217- PACE Lahore, Civilian Coop H/s85110982005
193- Tayyab textile mills Vs FESCO, HDIP3555482006
,
KESC Vs NTDC
95-2413572007
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Inspection and are functioning pursuant to Sec 38 of the NEPRA Act
C ti P tt (2005 06)
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Consumption Pattern (2005-06)Units billed 67603 GWh Losses 24.9%
Total Number of Consumers including KESC-17.24 M
% of% ofTotalKESC NosEx-WAPDACatagory
45.4%83%14.09M1.3512.74Domestic
Consumptio
n
ConsumerMillionNos Million
7%15%2.82M.402.42Commercial
29.3%1.5%0.23M0.020.21Industrial
17.3%.5%0.005M0.0010.004Bulk&
others
28
100%17.24M1.82M15.42MTotal
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Projected ShortagesElectricity Growth rate assumed to be 9%
Surplus/deficitPeak
demand
Installed
Capacity
Year
30001400019226/160002005
8001520019226/160002006
(2100)1950019500+2009
2960000+2030
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Pricing Mechanism
a) Generation---- New IPPs--- Cost Plus return on Equity, Tariff Comprises of CPP&EPP with Provision of adjustments for
currency fluctuations and inflation.
x st ng s governe un er . . ot eterm ne y .
b) Transmission--- Cost plus debt service plus Return on Equity.( Only transmission chargefor transporting Electricity) Cost CPP Plus EPP PLUS T. Char e transferred to Discos assed on the
prescribed formula.
Charging of CPP-------- on the basis of Max demand recorded by a DSICO
during the montharg ng o --------- as per pr ce per un e vere o e as e ra e
c) Discos Tariff --- Distribution Margin----cost plus return on assets (weighted average cost
of capital ).
Consumer end tariff is determined on the basis of CPP,EPP charged to a DISCO plus
distribution margin with the provision of Cross subsidization within the variousconsumer classes.
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Future Potential on indigenous resources
Expected PotentialFuel/techNo
y e
20000MWCoal2
enewa e
700MWMini/Micro h del5
uc ear
31
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