Nepra rejects NGC’s review plea against CPPA-G
NEPRA rejected NGC's petition against transitioning to a competitive electricity market, reaffirming direct billing and settlement to enhance financial discipline and transparency in the power sector.
- NEPRA's rejection of NGC's review petition.
- The shift to a competitive electricity market.
- Direct billing and settlement framework.
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has rejected a review petition filed by the National Grid Company (NGC) against its earlier determination regarding the registration of Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) as a Special Purpose Agent (SPA) and approval of the Agency Code, reaffirming the transition toward a competitive electricity market.
According to NEPRA’s detailed decision issued on May 13, 2026, the Authority found no merit in the grounds raised by NGC, stating that the petition neither identified any error apparent on record nor presented new or material evidence required under the NEPRA (Review Procedure) Regulations, 2009.
NGC had challenged key aspects of the Agency Code, particularly the shift from centralised billing and settlement through CPPA-G to a direct, bilateral contractual framework.
The company also sought continuation of the existing mechanism for recovery of Use of Transmission System Charges (UoTSC) and Pak Matiari-Lahore Transmission Company (PMLTC) charges.
However, NEPRA ruled that such requests were inconsistent with the Competitive Trading Bilateral Contract Market (CTBCM) framework, which mandates direct billing, settlement, and recovery arrangements between market participants. The Authority emphasized that the move away from centralized pooling is essential to improve financial discipline, transparency, and accountability in the power sector.
On the issue of PMLTC charges, the Authority rejected NGC’s claim that these should be treated as legacy pass-through liabilities. It clarified that only Power Purchase Agreements (PPAs) and Energy Purchase Agreements (EPAs) fall under the definition of legacy contracts, and transmission-related obligations do not qualify.
NEPRA also dismissed NGC’s concerns regarding increased payment risks under direct billing, noting that centralized mechanisms merely redistribute risks rather than eliminate them. The Authority maintained that under the new market structure, each entity must assume responsibility for its receivables and adopt appropriate contractual safeguards. The regulator further rejected proposals to introduce a “pay first, dispute later” principle, extend delayed payment surcharge provisions to transmission charges, and grant priority payment status to NGC.
Copyright Business Recorder, 2026
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