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NTDC, discos’ performance below Nepra standards

The performance of the National Transmission and Dispatch Company (NTDC) requires strict control to get closer to the National Electric Power Regulatory Authority (Nepra) standards, suggests the record provided by NTDC to Nepra.

Similarly, the performance of the distribution companies (Discos) in relation to Nepra prescribed performance standards is far below than the required levels.

According to officials, although a lot of efforts have been put in by Nepra to educate and train the distribution companies staff to prepare and maintain performance-related data and reports, yet inconsistency and data errors in their reports show the seriousness of the distribution companies to follow Nepra’s performance standards.

As far as performance of the entities, the reasons also point to the inability of the distribution companies to effectively manage and control their systems in view of central bodies controlling them.

Moreover, based on the analysis of the distribution companies safety-related data, the authority has noticed that due to non-adherence of the “safety code” and poor safety record of the distribution companies every year hundreds of deaths and permanent injuries were caused to the distribution companies’ staff and people.

All distribution companies and Karachi Electric Supply Company (KESC) have been directed in strong terms for prevention of accidents in future along with submission of inquiries held to fix the responsibilities of the accidents and reported disciplinary actions against the delinquent officials.

Nepra, as a regulatory body, has a responsibility to protect consumer interests, as well as promote efficiency in the sector, while ensuring an enabling environment for service providers to earn an appropriate profit.

The power system of Pakistan is operating on a ‘single buyer model’ where the power purchaser (CPPA) purchases power from all generation companies (Gencos), independent power producers (IPPs), Water and Power Development Authority (Wapda) hydro, and other producers; pools the electricity; and sells it to distributors (Discos) in proportion to their demand.

KESC, however, buys a fixed amount of power as per the decision of Nepra and a contract between CPPA and NTDC.

Electricity is delivered to customers by the distribution companies and KESC. The mix is highly skewed with around 60 percent of consumption accounted for by the domestic and agriculture sectors, which are subsidised by the federal and provincial governments often resulting in disputes and subsequently nonpayment.

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