Insulating IPPs from úndue’ deductions: OICCI urges Nepra to amend its rules

ISLAMABAD: Overseas Investors Chamber of Commerce and Industry (OICCI) has urged National Electric Power Regulatory Authority (Nepra) to amend its rules to save Independent Power Producers (IPPs) from “undue” deductions by CPPA-G.

OICCI, the representative body of top 200 foreign investors in Pakistan, regularly conducts surveys of its members on matters related to the business environment in Pakistan. Such survey findings are shared with key stakeholders and regulators to facilitate corrective measures on priority in the interest of promoting Ease of Doing Business (EODB) leading towards promoting Foreign Direct Investment (FD) in the country.

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In a letter to Chairman Nepra Waseem Mukhtar, OICCI’s Secretary General/ Chief Executive, Abdul Aleem stated that in the latest 2023 OICCI Regulatory Survey, many of OICCI member companies belonging to energy and power sectors have highlighted following issues and concerns: (i) in case of Independent Power Producers (IPPs), the Rules and Regulations have been used to penalise companies for matters that are adequately covered in the power supply contracts with Central Power Purchasing Agency Guaranteed (CPPA-G), a government entity, for example for delays in startup or for forced outages.

The Nepra Fine Regulations and Rules, it is recommended, should be amended to cover only the instances that are not governed under existing contracts between GoP and IPPs; and (ii) companies have to submit similar information to multiple authorities such as Nepra, Ministry of Energy, Boiler Inspector, Electrical Inspector, Labour Department, Anti- Narcotics department, etc. It is strongly recommended that a centralised repository should be established from where all information can be extracted by all the relevant officials.

OICCI has requested the power sector regulator to take necessary proactive measures to resolve the above highlighted issues to promote energy and power sectors related FDI in the country.

It has also invited Chairman Nepra to visit the Chamber at a mutually convenient date to have an interactive session with its members.

Copyright Business Recorder, 2023