Final test-run report on CTBCM: Stakeholders seek adjustments in their power tariffs

ISLAMABAD: The stakeholders have sought adjustments in their electricity tariffs to accurately reflect costs and eliminate costly cross-subsidies.

During a public hearing at National Electric Power Regulatory Authority (NEPRA) on a final test-run report on Competitive Trading Bilateral Contract Market (CTBCM) different stakeholders presented their viewpoints.

The main demand of stakeholders were as follows: (i) timely operationalisation of the CTBCM and finalization of the Use of System Charges (UoSC); (ii) safeguarding the CTBCM from past liabilities like stranded costs arising due to legacy contracts; (iii) recommending tariff adjustments to accurately reflect costs and eliminate cross-subsidies; (iv) advocating continuation of legacy contracts and accommodating “hybrid consumers”; (v) ensuring protection of existing wheeling agreements with private suppliers; (vi) dismissing concerns that CTBCM might lead to the collapse of DISCOs; (vii) emphasizing need for real-time data transparency to ensure fairness and efficiency in the market; (viii) calling for structural reforms, particularly the separation of DISCO wire and sales businesses; (ix) urging technical improvements in trading platforms, data access, grid infrastructure; (x) requesting clarity on contractual obligations, MCC amendments, & dispute resolution mechanisms; and (xi) highlighting concerns related to legacy generators & new institutional roles under the CTBCM.

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The main comments were submitted by All Pakistan Textile Mills Association (APTMA), Gul Ahmed Energy Limited, JWD Sugar Mills limited (JDW unit-III), K-Electric Limited, Multan Electric Power Company (MEPCO), Pakistan Association of Large Steel Producers (PALSP), Board of Investment, Punjab Power Development Board (PPDB), Amreli Steel, Pakistan Atomic Energy Commission (PAEC),National Power Control Centre (NPCC) and Government of Sindh.

The Authority granted the Market Operator Licence to CPPA-G on May 31, 2022, approved MCC and directed a 6-month test run. The Authority also directed and entitled CPPA-G to complete certain actions during Test Run phase. The Authority had directed CPPA-G to prepare a comprehensive First Test Run (FTR) in consultation with stakeholders at the end of the Test Run phase and submit the Report by November 2022.

In October 2023, CPPA-G through Power Division sent a summary to Cabinet Committee on Energy (CCoE) for approval to submit FTR to NEPRA. The CCoE in its meeting held in November 22, 2023, authorized CPPA-G to submit the FTR report to NEPRA. The decision was later ratified by the Cabinet on December 13, 2023.

During the hearing, representative of CPPA-G gave detailed answers to questions raised by the stakeholders and issues framed by NEPRA’s team.

Copyright Business Recorder, 2024