1. CPPA was created by Government of Pakistan under Restructuring of Power Sector, in 1992.

2. Working as an agent of NTDC, CPPA is mandated to buy each unit of generated electricity for DISCOs.

3. It is a seller of electrical energy to whole sale purchasers i.e. DISCOs and Bulk Power Consumers including KESC.

4. CPPA is an entity with Zero Asset and Zero Liability; it manages its business through wheeling charges.

CPPA Important Facts

CPPA1

Managing Director

Chief Engineer Settlement

Central Power Purchasing Agency (CPPA) CPPA2

CPPA Existing Organizational Structure

Staff Officer Technical

Director GeneralIT

Chief Operating Officer/General Manage.0r

D.M (5)A.M (5)

Manager Tech(3)

Manager Tech(2)

D.M (4)A.M (4)

Manager IT(2)

Manager(4)

D.M (4)A.M (4)

D.M (7)A.M (13)

D.M (2)A.M (2)

Manager L&CA(4)

Chief Engineer Procurement

Deputy G. M.Finance

Manager HR&A(4)

Pakistan has the immense potential to emerge,

sustain and be acknowledged as the best

electric power market, in South Asia, facilitating

win-win-win situation for investors,

customers as well as utility professionals.

Vision

3 CPPA

We undertake to procure each

unit of electricity produced from

different sources and to sell it to

DISCOs and bulk consumers to

offset the prevailing demand-

supply contrast.

Mission

4 CPPA

Strategic Goal

Central Power Purchasing Agency5

CPPA to be acknowledged as a

trusted, professional and efficient

agency owing to its internationally

accepted working procedures, non-

discriminatory and transparent

business operations, and excellent

performance standards.

5 CPPA

1. Ensure verification of invoices from generators (IPPs, GENCOs and WAPDA Hydel plants)

2. Execute settlement functions (Billing to DISCOs and bulk consumers including KESC under NEPRA determined mechanism)

3. Monitor functioning of different role players (Generators, NTDC and Purchasers); suggest changes in the SOPs

4. Enter into Energy Purchase Agreements with sponsors of RE projects

Objectives

CPPA6

CPPA is primarily responsible

for purchasing power from all

generators located throughout

Pakistan excluding Karachi

and selling it to all DISCOs

and bulk consumers including

KESC.

Core Responsibility

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Hydel

Thermal

–

Furn

ace O

il

RenewableTherm

al -

Nuclear

Thermal - Natural Gas

Thermal - Coal

1. Manage networking of CDPs for collection of energy data

2. Monitor functioning of meters installed at CDPs with grid

users (GENCOs, IPPs and DISCOs)

3. Undertake corrective measures for metering systems

errors

4. Establish Operating Committees, Metering Committees and

Interconnection Committees for all IPPs

5. Reconcile and process energy data received from Metering

Committees (NTDC, IPPs & DISCOs)

6. Monitor compliance with respective PPA/EPA

CPPA’s Functions

8 CPPA

7. Setup teams to witness generators’ Commissioning

Tests and Annual Dependable Capacity Tests

8. Process and execute necessary amendments to PPAs

9. Co-ordinate with Planning Power for technical studies

10.Participate in NEPRA public hearings on multiple

aspects

11. Co-ordinate with various NTDC departments for

arrangement of interconnection facilities

Central Power Purchasing Agency (CPPA)

CPPA’s Functions (Continued)

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Central Power Purchasing Agency (CPPA)

# IPP Name Location Capacity (MW) COD

1 Attock Generation Ltd Shiekhupura Road, Lhr. 156 17-03-09

2 Atlas Power Project Morgah, Rawalpindi 214 18-12-09

3 Engro Power Project Ghottki 217 27-03-10

4 Saif Power Generation Co. Sahiwal 209 30-04-10

5 Orient Power Ltd Kasur 209 24-05-10

6 Nishat Power Limited Kasur 195 09-06-10

7 Nishat Chunian Power Ltd. Kasur 195 21-07-10

8 Sapphire Elect. Co. Ltd Shiekhupura 209 05-10-10

9 Liberty Power Tech Faisalabad 196 13-01-11

10 HUBCO Power Narowal 214 22-04-11

11 Foundation Power Co. Daharki 178 17-05-11

12 Halmore Power Gen. Bhikki, Sheikhpura 209 25-06-11

Total : 2,402 MW

IPPs Under 2002 Power Policy

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Central Power Purchasing Agency (CPPA)

# IPP Name LocationCapacity

(MW)Expected

COD

1 Star Power Generation Daharki 126 Dec 2013

2 Uch-II Power PlantDera Murad

Jamali375 Dec 2013

Total : 710 MW

Upcoming IPPs Under 2002 P. Policy

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1. Coordinate NEPRA for:

• Issuance of Generation Licenses

• Tariff determination

2. Maintain close liaison with AEDB on:

• Capacity building on Renewable Energy (RE) technologies

• Actualizing of CER for RE Projects

3. Development of RE projects

4. Support DISCOs, Punjab Power Development Board and AJK Power Development Board for developing of small hydro power projects

5. Draft and negotiate EPAs with sponsors

6. Manage EPAs of completed projects

Renewable Perspective

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6. EPA was signed with ZEPL in January 2012.

Central Power Purchasing Agency (CPPA)

Status of Wind Power Projects

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5. EPA was signed with FFCEL in April 2011.

4. CPPA is negotiating standard draft EPA with several IPPs.

3. NEPRA has approved tariff for 8 IPPs.

2. 8 IPPs have so far acquired Generation Licenses.

1. 22 IPPs with 1,104 MW of Wind Energy are on the way.

# IPP Name Capacity(MW)

Tariff(US$ C/kWh)

Anticipated COD

1 Fauji Fertilizer Company 49.5 16.109 Jan 2012

2 Zorlu Enerji Pakistan 56.4 13.3456 Mar 2013

3 Foundation Wind Energy – I 50 14.1164 Jun 2013

4 Foundation Wind Energy – II 50 14.1164 Jun 2013

5Three Gorges First Wind Farm 49.5 13.9399 Jun 2013

6 Dawood Power Ltd. 50.0 11.870 Aug 2013

7 Arabian Sea Wind Energy 49.5 11.920 Oct 2013

8 Yunus Energy 49.5 17.3672 Oct 2012

NEPRA Determined Tariff - Wind Projects

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# IPP Name Capacity Location Anticipated COD

1 Tech Access 10 MW Punjab Under process at PPDB

2 China IW&EC 50 MWBahawalpur,

PunjabInterconnection Study in

progress

3DACC Power Generation Co.

50 MW+ 2,200 MW

Cholistan, Punjab

LOI issued by AEDB for Ist Phase

4Roshan Power (Pvt.) Limited

10 MW Kasur, Punjab LOI issued by PPDB

5Sanjwal Solar Power

1 MW SanjwalPower Acquisition Request

in process

6 PEC 356 KW IslamabadGeneration Licnese under

process by NEPRA

Upcoming Solar Power Projects

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Flow of Revenue Cycle

16 CPPA

1Verify bills from generators & compute payments

2Evaluate price chargeable to DISCOs & bulk consumers

3Bill to DISCOs, KESC and bulk consumers

4Collection of funds against bills issued by CPPA

5Monthly disbursal of funds to the generators

CPPA

IPPS’s Invoices Verification Process

Verification of Monthly Energy Purchase Price (EPP) Invoices

Verification of Monthly Capacity Purchase Price (CPP) Invoices

Verification of Monthly Supplementary Invoices (Markup, WPPF, WWF, etc.)

Preparation of Liquidated Damage Invoices

17

Central Power Purchasing Agency (CPPA)

GENCOs & WAPDA Hydel Invoicing

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Verification of Energy Purchase Price Invoices (EPP)

Verification of Capacity Purchase Price Invoices (CPP)

Supplementary Invoices claimed by the generators

Central Power Purchasing Agency (CPPA)

Invoicing Process for DISCOs & IPPs

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Invoices to DISCOs and KESC for sale of electricity

Billing to IPPs against energy purchased through NTDC network

Calculation of Energy Transfer Rate (ETR) & Capacity Transfer Price (CTR)

Monitoring for recovery of amount billed to DISCOs and KESC

Reconciliation of energy with generators

Reconciliation of energy with DISCOs

Reconciliation of financial issues with IPPs

Resolve legal issues like arbitration proceedings under Article XV of the PPA (Dispute Procedure)

Resolve disputes/issues with IPPs under PPA

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Reconciliation & Disputes Resolution

1. Maintain transparency

2. Ensure effective accountability

3. Exhibit non-discrimination among generators & customers

4. Achieve highest efficiency through corporate culture

5. Build industry standard capacity to manage business

6. Prepare and execute business plan

7. Mitigate cash shortfall risks

8. Monitor functioning of different role players

9. Develop formalized business standards and procedures

Objectives As Autonomous Entity

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