NTDC objected various directives of NEPRA and claimed that these would take the things towards another capacity trap by restricting the scope of bidding for lowest tariff. It further added that the said directions would increase the volume of projects and thus the least cost principle in connection with the Indicative Generation Capacity Expansion Plan (IGCEP 2020-47) would be compromised.
NTDC unveiled that several advisories of the power regulator (NEPRA) were moving against the government’s policy directives and decisions in which those decisions were also included which were taken by the CCOE a few months ago. Moreover it was found that some of the regulatory orders were in collision with the rules and laws.
The National Transmission and Despatch Company also turned down the directives of National Electric and Power Regulatory Authority that demanded the inclusion of some projects whose feasibilities had been completed by the provincial government; saying that such expansion without taking into account the transmission capacity would certainly cause a capacity trap and obstruct the Government’s focus to reduce the electricity basket prices.
Several orders are in collision with the CCOE decisions, NTDC contended
NEPRA’s orders for considering renewable energy projects in the 27-year expansion plan were also rejected by the NTDC whose generation licenses had been issued before the new notification of Alternative & Renewable Energy Policy (AREP 2020) was released. The transmission company contended that the initiative of including Category III projects as committed projects was inconsistent with the CCOE decision.
Explaining the reason for rejecting NEPRA’s orders about the inclusion of specific projects instead of block allocations of renewable projects, NTDC told that the said directive was against the CCOE decision which required competitive bidding-based capacity expansion in connection with the AREP targets.
It further said that NEPRA did not have the mandate of directing the system operator to rationalize a balance between public and private sector projects because it fell under the policy jurisdiction of the government.
The NTDC also claimed that a committed project did not need to be optimized and therefore the list of renewable projects provided by NEPRA to add to the IGCEP would not only damage the least cost principle of the IGCEP but also badly affect the end-consumer tariff.
NEPRA had publicly promised to establish a committee of technical experts to complete the IGCEP which is yet to be done, NTDC slammed
On 20th August, the regulator had sent back the IGCEP 2020-2047 to the NTDC with an objection that it needed an approval from the federal government before submitting to the NEPRA. The NTDC however said that as per the grid code of NEPRA, the company was required to prepare and submit the IGCEP to NEPRA for review and approval and no prior approval from the government was required in this regard as the plan had been prepared under the policy direction given by the government.
The system operator also urged the regulator to recall that it had publicly promised to establish a committee of technical experts to complete the IGCEP which was yet to be done. It advised the regulator to fulfill its commitment on urgent basis so that the TSEP could be finalized through the consultants of Japan International Cooperation Association who had been engaged since February, 2019.