Nepra approves additional electricity imports from Iran

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved additional electricity imports from Iran to help meet demand in Balochistan, according to a decision issued amid the Iran-US conflict.

Under the approved pricing formula, Pakistan will pay 9.2 US cents per unit of electricity if the oil price remains below $100 per barrel. The per-unit rate will rise to 11 US cents if international oil prices go above $100 per barrel.

The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) had asked the regulator to approve the tariff for the supply of 104 megawatts, along with an additional 100MW from Iran’s state-owned power utility TAVANIR. The application was submitted to Nepra on September 12, 2023.

CPPA-G filed the request in line with a decision taken by the Economic Coordination Committee (ECC) on August 7, 2023. The application included signed amendments covering changes to supply arrangements and the tariff structure. CPPA-G later submitted further details on December 28, 2024, including information on the proposed amendments and their main features.

ECC approval and tariff extension

The ECC of the Cabinet, while examining a summary moved by the Power Division, approved the proposal in August 2023. It allowed the execution and submission of amendments between CPPA-G and TAVANIR and authorised CPPA-G to act as the power purchaser on behalf of the Government of Pakistan for the electricity import arrangement.

After that approval, CPPA-G approached Nepra for permission to extend the tariff for the existing 104MW supply, which had already been determined by the regulator, and to approve the tariff for the additional 100MW agreed under the amended arrangements.

Nepra, however, expressed concern over what it described as a repeated pattern by CPPA-G of seeking approval for tariff extensions and contractual changes after considerable delay, often after the relevant period had already started or had substantially passed.

"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," it highlighted.

Regulator seeks long-term supply plan

Alongside the approval, Nepra directed CPPA-G, QESCO, ISMO, and NGC to jointly prepare and submit a comprehensive and coordinated roadmap for electricity supply to the relevant regions within six months of the order.

The regulator said the roadmap should be based on a holistic study and should include a detailed review of system reliability and security, along with economic evaluation and risk mitigation measures. It also called for the identification and development of indigenous, secure, viable and diversified supply options aimed at ensuring long-term energy security.

Nepra further asked for a prudent and rational assessment of need, including demand growth and load forecasting, as well as a clear institutional coordination mechanism for the development and implementation of the proposed plan.

The decision covers the continuation of the existing 104MW supply and the addition of 100MW from Iran under the revised arrangements approved by the federal government and placed before the regulator by CPPA-G.