ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) in its endeavor for improving and opening up the power sector and to promote competition, approved regulations for wheeling of electricity.
According to NEPRA, Wheeling of Electric Power Regulations 2016, a generation company can sell its electricity to bulk power consumer (BPC) at any location in Pakistan, said a press release issued here Thursday.
The consumer will be required to pay the cost of transporting of electricity (Wheeling) for using NTDC/DISCO system, in addition to the cost of generation, to be mutually agreed between the generator and BPCs.
Notification of NEPRA Wheeling of Electric Power Regulations 2016 is an important milestone towards opening the market to small and medium sized generators which will encourage them to sell electricity to their potential buyers.
All power distributions companies (DISCOs) at the same time will be required to maintain and improve their service quality to retain their customers while they would also financially benefit by receiving wheeling charges paid by the generation companies.
With the involvement of private sector generators at transmission and distribution levels, not only the economy will get a positive boost, it is expected that the load demand on the system will be reduced considerably, enabling DISCOs to reduce load shedding.
One of the key features of the Regulations is the facilitation of dedicated transmission/distribution infrastructure. Under this concept where technical limitations do not allow Generation Company, using DISCOs/Transmission Company network, it may construct a dedicated Transmission or Distribution system through its own expense to supply electric power to its authorized consumer.
The Regulations of wheeling will go a long way in creating a competitive market which will benefit the consumers and all the stake holders in the Power Sector of Pakistan.
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