The National Electric Power Regulatory Authority (Nepra) on Thursday issued new rules allowing new market players to have non-discriminatory access to existing transmission and distribution networks currently maintained mostly by the public sector entities and K-Electric and provide electricity to bulk consumers.
The Open Access (Interconnection and Wheeling of Electric Power Regulations, 2022 would practically end exclusivity rights of the existing transmission and distribution companies in the country as their old licences expire within a year and private entities would be allowed to enter their market.
Under the rules network licensees, currently transmission and distribution companies, would be required to establish, operate and maintain their distribution system or transmission system, as the case may be, in a manner that ensures non-discriminatory open access to others under the legal framework of the regulator.
The network licensees shall, on an annual basis, prepare open access reports demonstrating compliance with the regulations and licence terms and conditions, with the details of its open access users, available and planned capacity, any issues identified in the provision of open access, and any instances where open access was denied along with justification. The said report shall also be made available on the website of a network licensee.
The report would also be submitted to Nepra within one month from the date of the end of the respective financial year. The distribution company shall develop the use of the system agreement within 90 days of the notification of these regulations and make it public with the regulator’s clearance.
Any person or applicant whether a generator or a bulk power consumer or a captive generating plant would be free to apply for a network licensee’s system in line with Nepra’s legal and technical codes. In case a generation company intends to connect to a network licensee, the network licensee would be responsible for financing, construction and operations of the interconnection facilities under the investment plan to be approved by Nepra.
Such a person or entity which has been granted a competitive supplier licence by the regulator or a person who has submitted an application for such licence would approach the relevant distribution company in whose service territory the competitive supplier intends to supply electric power to the eligible bulk power consumers, for the execution of use of system agreement.
In case where the bulk power consumer is connected directly to the transmission system of a transmission licensee, the use of system agreement shall be executed with the relevant distribution licensee in whose territory the bulk power consumer is located. The distribution licensee shall acknowledge the receipt of the request within three days.
The request, subject to complete documentation under Nepra’ standards, shall be accepted by the concerned distribution licensee within ten days of the acknowledgement. After acceptance of the request, the concerned distribution licensee and the competitive supplier shall execute the use of the system agreement for collection and payment thereof within thirty days of such acceptance.
The competitive supplier shall provide a security cover in terms of an irrevocable standby letter of credit in favour of the concerned network licensee covering two months’ estimated payment of use of system charges and charges on account of late payment.
An open-access user shall be entitled to wheel electric power using the system of the network licensee subject to compliance with these regulations and the market commercial code and use of system agreement. Such a user shall pay use of system charges, as determined by the Nepra from time to time, to the designated accounts.
