According to Nepra’s Wheeling of Electric Power Regulation 2016, a generation company can sell its electricity to Bulk Power Consumer (BPC) at any location in the country. The consumers will be required to pay the cost of transporting of electricity (wheeling) for using NTDC/DISCO system, in addition to the cost of generation, to be mutually agreed between the generator and BPCs. Nepra’s spokesperson said that notification of Nepra Wheeling of Electric Power Regulations 2016 is an important milestone towards opening the market to small and medium sized generators which will encourage them to sell electricity to their potential buyers. DISCOs at the same time will be required to maintain and improve their service quality to retain their customers while they would also financially benefit by receiving wheeling charges paid by the generation companies. With the involvement of private sector generators at transmission and distribution levels, not only the economy will get a positive boost, it is expected that the load demand on the system will be reduced considerably, enabling DISCOs to reduce load shedding, the spokesperson added.
The “wheeling” or “wheeling services” means the use of the distribution system of the Disco for the transport of electric power. Official sources told The News, the wheeling meters with technical specification specified by the Disco will be installed at entry and exit points of DISCOs to measure the electrical power entering and exiting the Disco network. Now many BPCs, including real estate projects and industrial zones, can easily get uninterrupted power supply from a Genco that falls in the Disco jurisdiction.
Notification of Nepra Wheeling of Electric Power Regulations 2016 is an important milestone towards opening the market to small and medium size generators which will encourage them to sell electricity to their potential buyers. Discos at the same time will be required to maintain and improve their service quality to retain their customers while they would also financially benefit by receiving wheeling charges paid by the Gencos.
With the involvement of private sector generators at transmission and distribution levels, not only the economy will get a positive boost, it is expected that the load demand on the system will be reduced considerably, enabling Discos to reduce load shedding. One of the key features of the regulations is the facilitation of dedicated transmission/distribution infrastructure. Under this concept where technical limitations do not allow generation company, using Discos/transmission company’s network, it may construct a dedicated transmission or distribution system through its own expense to supply electric power to its authorised consumer.
The regulations on wheeling will go a long way in creating a competitive market which will benefit the consumers and all the stakeholders in the power sector of Pakistan. Discos are liable to offer non-discriminatory open access to its distribution and inter-connection services to the applicants. The Disco shall enter into a wheeling agreement with the applicant within 30 days of the acceptance of the application and a copy of the agreement shall be submitted to Nepra within seven days of execution of the agreement. The wheeler of power shall have the option of renewal after expiration of the original term of the agreement.
A Genco may construct a dedicated distribution system from its own expense to supply electrical power to its authorised bulk power purchasers (BPCs). Such dedicated distribution system shall be handed over to Disco for ownership, maintenance and operation. However, the cost incurred by the generation company for setting up the distribution system will be recovered by the generation company through the wheeling charges. The Disco shall not connect such dedicated distribution system to its other distribution network without the consent of Genco.
The Disco shall acknowledge the receipt of the application within three days of the receipt of the application if the same is complete and contains the requisite information for processing the application: provided that any application which is incomplete or is not accompanied by the required information shall be returned within three days of filing thereof, identifying in writing the deficiencies in the application and the applicant shall be given a reasonable time to re submit the application.
Source: Business Recorder
