Provinces worried over controversial NTDC investment Plan

The provincial governments have expressed grave concerns over NTDC’s three-year investment plan, which ignores several of their important projects.

NTDC pleaded with the electricity regulator to grant Rs. 369.222 billion for the Multi-Year Tariff (MYT).

The National Electric Power Regulatory Authority (Nepra) held a public hearing on Monday to discuss the question of whether the claimed investment of Rs. 369.222 billion for the MYT control period is justifiable.

During the hearing, the regulator sought justification for the proposed investment.

It asked how it would help remove restrictions, increase available energy for wheeling, reliability & continuity of supply, and decrease transmission losses.

The power regulator questioned the NTDC over whether or not it had enlisted the support of the provinces at the open hearing.

NTDC had not previously shared it with the energy departments of the provinces. Nepra had instructed NTDC to inform all provincial departments.

It was disclosed that provincial energy agencies that had provided feedback participated in online virtual sessions.

The power regulator also questioned whether the investment amounts were based on an outdated plan or if NTDC had updated them.

The modification of investment levels, according to an NTDC representative, was based on previous projections.

During the hearing, it was revealed that the provincial governments had expressed concerns because Balochistan had requested a transmission line to connect its 300 MW, Gwadar Plant.

Additionally, Sindh had sought that an STDC body receives control of the province’s connecting lines.

Additionally, it stated that STDC staff should be included in the NTDC’s training program for investment plans in order to enhance their capacities.

KPK province claimed that a number of its projects were a part of the Indicative Generation Capacity Expansion Plant (IGCEP).

But it claimed that the NTDC investment strategy had disregarded those projects.

Punjab province recommended that NTDC handle industrial and commercial growth and that foreign-funded projects be given to the province to finish with its own resources.

Due to delays in project completion, the NTDC pays commitment fees on loans from outside.

Punjab province had also sought that NTDC discloses the commitment fees it pays to international lenders.

The power regulator claimed that NTDC had presented an unclear investment plant to it.

Additionally, it requested clarification on the switch from an annual tariff scheme to a multi-year tariff mechanism.

According to NTDC, since Discos had already switched to a multiyear tariff, they would soon follow suit.

The electricity regulator further requested that the NTDC present a fair investment project, in which tiny provinces like Balochistan should not be disregarded.

Additionally, it instructed the NTDC to address the provinces’ worries about the investment plan.NEPRA Imposes a Fine of Rs. 10m on NTDC

According to Chairman Nepra, if you don’t strengthen your exercise of collaboration with the provinces, your projects can be postponed.

Additionally, he instructed the NTDC to confer with the provinces on projects at least once a year at the midpoint.

The power regulator also requested a completion date for the projects included in the investment plan.

It stated that tariffs would also be connected to investment and that NTDC would need to provide a schedule for the projects.

It also requested that the NTDC provide the power regulator with updates on investments in power projects on a monthly or quarterly basis.