After Sindh, KP to have its own Transmission & Grid System Company

ISLAMABAD- After Sindh, Khyber Pakhtunkhwa has become the second province in the country which will have provincial Transmission Grid System Company (Private) Limited, after the Nepra has granted licence to the province. 

The Authority in terms of Section-18A of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (referred to as the “NEPRA Act”) has granted a licence to Khyber Pakhtunkhwa Transmission Grid System Company (Private) Limited to act as a Provincial Grid Company (PGC) in the province, said a spokesman of NEPRA here. In 2019, NEPRA had granted licence to Sindh Transmission Dispatch Company (Private) Limited (STDCPL). 

The grant of licence to the subsidiary/company of the province of Khyber Pakhtunkhwa will facilitate in connecting the under construction as well as future proposed hydel power projects to the designated load centers not only in the province but will also help in transporting cheap electricity to national grid, thus paving the way for development of the province as well as the country, the spokesman said. 

Earlier this month, NEPRA had conducted public hearing on the KP’s petition to grant lincence for Khyber Pakhtunkhwa Transmission Grid System Company (Private) Limited. During hearing, both Nepra and National Transmission Despatch Company (NTDC) had said that they didn’t have any objection to the setting up a provincial grid transmission company as they want to create competition in the electricity transmission system. The regulator had completed the hearing and reserved the judgment on the KP petition for provincial grid company. 

The hearing, presided over by Chairman NEPRA Tauseef. H. Farooqi, was informed by the KP government that a license has already been issued by the regulator to Sindh government for the establishment transmission company. The applicant said that so many hydropower projects in the province are in pipeline and the province needs its own transmission company to carry the upcoming electricity load. “We want that the province should have its own transmission company,” he added. Chief Legal Officer NTDC Hamza Randhawa said that they have legal and technical objections to the KP request for provincial grid company. The official of the NTDC said, “Let the new electric policy arrive prior to the issuance of license to KP”. The new electric policy will also elaborate the establishment of the provincial gird transmission companies. “We don’t have any objection to the establishment of new provincial transmission company but let the policy in this regard come,” the official said.

Chairman NEPRA said that the government is working on proposal for handing over the Discos to provinces. He said that they don’t have any objection to the transmission company and you can set up provincial regulatory authority as well if the provincial government desires so. However, the official of the KP government said that they don’t have any such intention of setting up a provincial authority.

Earlier, in its comments against the petition, the NTDC said that under Article 154(1) of the Constitution, the Council of Common Interests (CCI) shall formulate and regulate policies in relation to matters in Part II of the Federal Legislative List of the Constitution. In light thereof, if a matter falls within the powers of CCI under Article 154, it must be placed before it. The subject of ‘Electricity’ is listed as Entry No. 4 in Part II of the Federal Legislative List of the Constitution and therefore, the policy decisions in respect of the electricity must be placed before the CCI. In light thereof the preparation and prescription of policy framework in respect of inter alia, the integration of national and provincial transmission systems under Section 14A of the NEPRA Act is a sine qua non for the operations of, and/or grant of license to any provincial grid company. Unless such policy framework becomes effective, no license could have been granted to any provincial grid company under Section 18A of the NEPRA Act. The NTDC had further pleaded that besides other problems transmission license to a provincial grid company cannot be granted due to several NEPRA regulations. NEPRA has completed the hearing on the license and reserved the judgment.

Article source: https://nation.com.pk/27-Feb-2021/after-sindh-kp-to-have-its-own-transmission-grid-system-company