ISLAMABAD: Kot Addu Power Company (KAPCO) has sought Consent Letter from Central Power Purchasing Agency-Guaranteed (CPPA-G) that is required for determination of tariff and Power Purchase Agreement (PPA).
The company apprised that National Electric Power Regulatory Authority (NEPRA) has approved and notified IGCEP 2022-31 on February 01, 2023 wherein NTDC has retained KAPCO Energy Block -1&II with a minimum requirement of 500 MW.
The IGCEP states “Minimum dispatch of 500MW from existing KAPCO CCPP( Block-1 and Block-II) in the month of May to September up-till year 2025 has been considered, beyond its PPA expiry i.e. October, 2022, owing to network requirements/ constraints, whereas the remaining capacity( Block-III) has been retired as per PPA expiry.” In a letter to CEO CPPA-G, KAPCO’s CEO Aftab Mahmood Butt stated that KAPCO has kept both its 220 KV and 132 KV switchyards in operation notwithstanding the expiry of PPA on October 24, 2022, for smooth supplies to Mepco and associated regions.
This facility was made available in the larger interest of the country and system as well as on the understanding that CPPA-G would shortly issue the Consent Letter.
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In this context, the power company once again has apprised that it submitted tariff petition to NEPRA on October 24, 2022, which returned the petition stating that power purchaser (CCPA-G) consent is required to process the tariff petition.
With regard to NEPRA’s Electric Power Procurement Regulations 2022 of December 6, 2022, the power company argued that these regulations are part of CTBCM documents and may result in a delay in execution of PPA with supplier of lost resort (Disco). CPPA-G, in addition to being registered as a market operator was authorised to act as Agent on behalf of the Discos for electric power procurement.
According to the power company, summer season is approaching and due to overloading of auto transformers, there will be requirement of generation from Kapco to meet the demand of local network as already indicated by System Operator i.e. NPCC and MEPCO.
The company has requested Chief Executive Officer, CPPA-G to resolve the pending issues including Consent Letter without further delay to enable finalization of determination of tariff and PPA which is imperative to meet high dispatch in coming summer season especially before the month of Ramazan.
The power company is already in the limelight during a recent meeting of Senate Standing Committee on Power, headed by Senator Saif Ullah Abro for getting dispatch order from NPCC on the day of power breakdown on January 23, 2023, instead of Thermal Power Station Faisalabad which also has facility of black starter. The Standing Committee has expressed anger at the Privatisation Commission, NEPRA and CPPA-G for extension in PPA for one year.
All the concerned Organisations are defending their decision but the Committee is still grilling them for the decision which the government believes was the best commercial decision to avoid further litigation.
During the last meeting of Standing Committee, Chairman Senator Saif Ullah Abro reiterated his stance that the Committee would not allow the government entities to flout its instructions.
Copyright Business Recorder, 2023