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Saturday June 15, 2024

Nepra seeks public input on power distribution deal

By Israr Khan
June 09, 2024
A view of Nepras buildings in Islamabad. — Nepra/File
A view of Nepra's buildings in Islamabad. — Nepra/File

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is inviting public comments on a draft agreement that outlines the terms for interconnection between distribution companies (DISCOs) and bulk power consumers (BPCs).

The draft inter-connection agreement details the rights, responsibilities and procedures for connecting to and receiving electric power from the DISCO network. It aims to ensure compliance with Nepra regulations and provide a clear framework for the operational and commercial relationship between the parties involved.

Nepra’s call for public input is part of its ongoing efforts to enhance transparency and stakeholder engagement in the regulatory process. The draft specifies terms under which BPCs will connect to the DISCO network, including a comprehensive list of definitions for key terms like ‘Act’, ‘Authority’, ‘Agreement’, and ‘Applicable Documents’, ensuring mutual understanding. It identifies DISCOs as entities operating under Nepra-issued licenses and BPCs as businesses requiring electric power, outlining the steps to formalize this arrangement. Key details include interconnection capacity and rights, specifying the maximum power demand of the BPC and the corresponding capacity provided by DISCO. It also covers the BPC’s right to connect and energize their facilities, subject to compliance with agreed terms. Responsibilities for interconnection facilities are defined for both parties, including design, construction, installation, and maintenance. The agreement distinguishes between Disco-owned and BPC-owned facilities, ensuring both understand their obligations to maintain operational and safety standards.Provisions for liquidated damages address potential breaches, specifying conditions under which damages may be claimed, including delays or failures in meeting agreed terms. The Operation, Maintenance, Safety, and Protection article emphasizes adherence to safety standards, regular maintenance schedules, and protocols for addressing faults or emergencies.

Metering and billing requirements are outlined, including the installation and maintenance of metering systems, procedures for meter reading and the resolution of discrepancies, ensuring transparency and accuracy. The agreement details charges associated with connecting to the DISCO network, payment terms, and disconnection procedures.

Both parties have defined obligations and rights, including access rights for maintenance and operational purposes. Provisions for force majeure events, liability, and indemnity clauses address circumstances beyond control and specific risks. A structured dispute resolution process is included, specifying steps for negotiation, mediation and arbitration.

The final section covers miscellaneous provisions such as amendments, confidentiality, notices and governing law, ensuring the agreement remains comprehensive and adaptable to future changes.