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16 June 2004 - Pakistan's National Electric Power Regulatory Authority (Nepra) has said that all efforts to restructure the power sector and the introduction of
competition in private power distribution and generation units should be in the public interest.
At a seminar entitled 'The introduction of competition in the Pakistan power sector', speakers said that privatisation, giving rise to competition, would lead to lower rates and better service to consumers.
The movement towards a competitive regime will be gradual. Existing arrangements of Wapda being a single buyer will continue till June 30, 2004 after which generating service providers will be allowed to enter into direct contracts with
distribution companies or with eligible consumers defined as Bulk Power Consumers, says a press release issued by Nepra.
The body had circulated a draft transition order in December 2002, which specified Nepra's vision about the future market structure. The future market structure as envisaged in the transmission licence granted to NTDC was also elaborated.
Setting up four divisions within NTDC namely Central Power Purchase Agency (CPPA), System Operator (SO), Transmission Network Operators (TNO) and Contract Registrar &Power Exchange Administrative (CRPEA) is under the order.
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