Nepra to introduce ‘power-wheeling system’ in Karachi

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WEB DESK: National Electric Power Regulatory Authority (Nepra) is introducing ‘power-wheeling system’ in Karachi to permit small producers to sell directly their electricity to industrial and residential consumers.

The new system is primarily aimed at ending the monopoly of big power distributors in the country and give advantage for efficient use of electricity, Chairman Nepra, Brigadier Tariq Sadozai (Retd), told a hearing on KE’s Fuel Charges Adjustment (FCA) at a local hotel on Friday.

“A notification will soon be issued in this regard,” Sadozai said, adding that the ‘power wheeling system’ would help producers generate and sell electricity directly to small industries, residential colonies and apartment buildings. He spelt out a mechanism to sell power directly that the power producers would require paying only ‘use of system charges’, which the Nepra would determine, to utilise transmission or distribution grid network to transport electricity from plants to purchaser.

The new producers can also employ their networks to transmit power to the users if the existing transmission lines are denied to them, he said, adding that Nepra would issue licenses to the electricity start-ups to install fresh infrastructures. Both power seller and purchaser would be entitled to fix the power tariff with mutual agreement, and they do no need any kind of tariff determination from Nepra, he said.

“The system has already been introduced in Punjab a few months ago. It is a global practice where multiple power generating companies are allowed to produce and distribute electricity and we are following the same practice. It is not a new thing,” an official told Business Recorder after the hearing.

By Muhammad Shafa

Source: Business Recorder