Plan to auction 155MW power to industries hits snag.

Byline: Manzoor Ali

PESHAWAR -- The Khyber Pakhtunkhwa government's plan to auction 155 megawatts of electricity to industrial units under the wheeling regime has hit a roadblock as two power distribution companies have got a stay order from the court of law against the Nepra's decision on wheeling charges.

Wheeling is the export of power from generation source to another entity through transmission system of distribution companies, while the fee paid for the use of transmission system is called wheeling charges.

In power wheeling, generation companies use the National Transmission and Dispatch Company's (NDTC's) transmission system for high voltage electricity and that of distribution companies for low-voltage power supply.

The Pakhtunkhwa Energy Development Organisation (Pedo) has been selling electricity generated by the 18MW Pehur hydropower unit in Swabi district to five bulk power consumers (BPCs) from the province since last June under the wheeling regime using the Peshawar Electric Supply Company's (Pesco) distribution system.

Two Discos get stay order against Nepra's wheeling charges decision

Under the agreement, the Pedo has been providing electricity to the AJ Textile Mills Limited, Cherat Cement, Cherat Packaging, Gadoon Textile Mills and Premier Chip Board Industries at cheaper rates.

The Nepra had granted a wheeling licence to the Pedo in April last year.

Earlier this month, the Islamabad High Court had granted a stay order to the Hyderabad Electric Supply Company (Hesco) and Multan Electric Supply Company (Mepco) against Nepra's Jan 11, 2021, wheeling cost determination order.

Adviser to the chief minister for energy and power Himayatullah Khan told Dawn that following the stay order, Phase II of the province's planned auction and wheeling of 155MW electricity was unlikely to move forward.

He said the delay was likely to affect the province 'drastically' as it would hamper the energy and power department's entire policy of providing cheap power to the local industries.

Mr Himayatullah said the stay order would also disrupt the provincial government's attempts to offset the province's locational disadvantage by providing cheap electricity to the local industrial units.

'Industrial revival, economic growth, employment and revenue generation for the province will be severely compromised due to a delay in wheeling regime,'...