Key federal entities oppose grant of licence to KP company.

ISLAMABAD -- The Central Power Purchasing Agency and the National Transmission and Despatch Company - both key federal entities - have opposed transmission licence to the Khyber PakhtunAkhwa Transmission and Grid System Company (KPTGC) that seeks to operate about 7300MW of power supply system in the province over a period of five to 10 years.

In response to comments sought by the National Electric Power Regulatory Authority (Nepra) from stakeholders over the KPTGC's request for grant of provincial transmission licence, the Punjab government has, however, supported the request while demanding that the proposed licence should ensure provision of minimum technical and human resource capital as and when required and the provincial transmission company should provide open access and participate in the wholesale electricity market.

The CPPA, which looks after the financial matters relating to power purchase from all public and private sources and sales to all distribution companies (Discos), has contended that existing laws allow only one power system operator in the country at one time that was already in place running the national grid in the shape of National Transmission and Despatch Company (NTDC).

It said the KP company had defined its principle business as system operations and scheduling and despatch of the generation plants. 'This is in contradiction to the provisions of the Nepra Act,' which provides for a system operator (an entity) to perform the function of system operations and required a mandatory System Operator Licence.

Punjab favours request by KPTGC to run part of national grid

Section 23G of Nepra Act categorically stated 'only one such licence shall be granted at any one time'. However, till the grant of such licence, the National Grid Company (NGC) shall perform the function of System Operator as given in Section 18 of Nepra Act.

Moreover, the generation facility connected directly or indirectly to the NGC or Provincial Grid Company (PGC) shall be subject to the economic dispatch as directed by the system operator. Therefore, the PGC will have no control over the dispatch of such generators within its territory.

Also, the application by the KPTGC envisaged power evacuation of approximately 7,320 MW to be available in the next five to 10 years by various hydropower projects. As per Grid Code, the NTDC is mandated to prepare Indicative Generation Capacity Expansion Plan (IGCEP) involving the demand and supply situation of the...