Shafaqna Pakistan: Amid the ongoing Iran–US tensions, the National Electric Power Regulatory Authority has approved additional electricity imports from Iran to help meet demand in Balochistan.
Under the approved pricing formula, Pakistan will pay 9.2 US cents per kilowatt-hour if international oil prices remain below $100 per barrel. The tariff is expected to rise to 11 cents per unit if global oil prices exceed the $100 threshold.
The Central Power Purchasing Agency (Guarantee) Limited CPPA-G had submitted an application to the regulator on September 12, 2023, seeking approval for the import of 104 MW of electricity, along with an additional 100 MW from Iran’s state-owned utility TAVANIR.
The request was made in line with a decision of Pakistan’s Economic Coordination Committee dated August 7, 2023, and included amendments to supply arrangements and tariff structures.
Subsequently, CPPA-G provided further submissions on December 28, 2024, including detailed information on the proposed amendments and their salient features.
The Economic Coordination Committee (ECC) of the Cabinet, while considering the summary submitted by the Power Division, approved the proposal in August 2023.
It authorized the execution and submission to the authority of amendments between CPPA-G and TAVANIR, empowering CPPA-G to act as power purchaser on behalf of the Government of Pakistan for electricity import.
Later, CPPA-G filed the instant application before the authority on September 12, 2023, seeking approval of an extension in tariff for the existing supply of 104 MW (as already determined by the authority) and approval of the tariff for the additional 100 MW supply agreed under the amendments.
In a decision, the power regulator expressed concern that CPPA-G has repeatedly followed a pattern of submitting requests for approval of tariff extensions and contractual amendments with significant delays, often after the relevant period had already commenced or, in some cases, substantially elapsed.
In the instant matter, CPPA-G submitted the request for approval of tariff extension in September 2023, whereas the same pertains to continued supply effective from January 2022 through 31 December 2024.
The power regulator directed CPPA-G, QESCO, ISMO, and NGC to jointly develop and submit a comprehensive and coordinated roadmap for the electric power supply plan for the concerned regions within six months after this order is issued.
This roadmap shall be based on a holistic study and shall include, but not be limited to a detailed assessment of system reliability and security, including economic evaluation and risk mitigation measures.
It also directed identification and development of indigenous, secure, viable, and diversified supply options to ensure long-term energy security.
Nepra also calls for prudent and rationalized need assessment, including demand growth and load forecasting; and a clear institutional coordination mechanism for the development and implementation of the proposed plan.
Source: Express Tribune
