ISLAMABAD:
Amid the Iran-US conflict, the National Electric Power Regulatory Authority (Nepra) has approved additional electricity imports from Iran to meet Balochistan’s demand.
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 $100 per barrel. The unit cost could reach 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, requesting approval of the tariff for the supply of 104 MW, as well as an additional 100 MW of electricity from the Iranian state-owned electricity 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 relating to revisions to the procurement terms and pricing structure.
Subsequently, the CAPP-G provided further comments on December 28, 2024, including detailed information on the proposed changes and their main features.
The Economic Coordination Committee (ECC) of the Cabinet, while considering the summary submitted by the Power Division, approved the proposal in August 2023.
It authorized the execution and submission to the authority of amendments between CPPA-G and TAVANIR, empowering CPPA-G to act as a power buyer on behalf of the Government of Pakistan for import of electricity.
Later, CPPA-G filed the present application with the authority on September 12, 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 supply of 100 MW agreed under the amendments.
In a ruling, the electricity regulator expressed concern that the CPPA-G has repeatedly followed a pattern of submitting requests for approval of tariff extensions and contract changes with significant delays, often after the relevant period has already started or, in some cases, has largely passed.
In this case, CPPA-G submitted the request for approval of tariff extension in September 2023, while the same applies to the continuation of the supply in force from January 2022 to December 31, 2024.
The electricity regulator has directed CPPA-G, QESCO, ISMO and NGC to jointly develop and submit a comprehensive and coordinated roadmap for electricity supply plan for the affected regions within six months of the issuance of this order.
This roadmap must be based on a comprehensive study and must include, but not be limited to, a detailed assessment of the reliability and security of the system, including an economic assessment and risk mitigation measures.
He also led the identification and development of local, secure, viable and diverse supply options to ensure long-term energy security.
Nepra also calls for a careful and streamlined assessment of needs, including demand growth and load forecasting; and a clear institutional coordination mechanism for the development and implementation of the proposed plan.
