ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has granted licence to Khyber Pakhtunkhwa Transmission & Grid System Company (Private) Limited to act as a Provincial Grid Company (KP-PGC) in the province, as Federal Government and NTDC extended “unflinching” support to the KP government.
Earlier, Nepra had granted licence to Sindh Transmission Company after many “ifs” and “buts”. The Sindh Company is working on different projects.
The grant of transmission and grid licence in terms of Section-18A of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 to the subsidiary/company of the province of Khyber Pakhtunkhwa will facilitate in connecting the under-construction as well as future proposed hydel power projects to the designated load centers not only in the province but will also help in transporting cheap electricity to National Grid thus paving the way for development of the province as well as for the country.
On February 9, 2021, while hearing a petition of the KP government, Chairman, Nepra gave his consent to the establishment of power regulators at the provincial level for provision of better service to the people and resolution of electricity issues.
The representatives of newly-established company, who have been purportedly hired at “exorbitant” perks and privileges, failed to justify their case. However, Hamayat Ullah Khan, Advisor to Chief Minister KP on Energy, gave a plenty of reasons for setting up of a transmission and grid company and supply of cheap electricity to industry, which has 16 to 20 per cent disadvantage vis-a-vis industry in Karachi and Punjab due to long distance. The provincial transmission line and grid company plans to construct, operate and maintain/lay transmission lines of 500, 220 and 132 KV and grid stations.
Barrister Asghar Khan, the legal counsel for the KP-PGC, gave a detailed presentation, arguing that the transmission lines will be for evacuation and transmission of power from and through the following regions: (i) Dir and Chitral; (ii) Swat; (iii) Kohistan; (iv) Mansehra; (v) Dera Ismail Khan and; (vi) Special Economic Zones. The total power generation to be evacuated is 7539 MW of which surplus power will be exported to the national grid, Balochistan and even Central Asia when the CASA projects will be completed. The KP-PGC is envisaging an investment of approximately $ 800 million in the transmission and grid infrastructure in various phases. The tariff will be based on Use of System (UoS) charges.
He also shared the entire legal aspects related to the proposed transmission and grid company and also responded to the queries raised by the NTDC and Nepra's teams.
The terms of the licence of the KP PGC will be for 30 years and it will allow evacuation and transmission of power from private generation, provincial and federal projects etc. The Punjab Government is also considering setting up its own transmission and grid company for projects to be established in the province.
Copyright Business Recorder, 2021