Nepra reviews new distribution code to transform power grid

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is reviewing the newly drafted Distribution Code 2024, a comprehensive regulatory framework aimed at enhancing the reliability, safety, and efficiency of Pakistan’s electricity distribution system.

The code applies to Distribution Network Operators (DNOs), power generators, and bulk power consumers with connected loads exceeding 1 megawatt (MW). This reflects a broader shift toward market-based energy reforms.

The updated code introduces detailed guidelines for system operations, focusing on improving communication protocols, ensuring system restoration after outages, and implementing enhanced safety measures.

NEPRA has invited stakeholders and interested parties to provide their feedback on the draft within a month, emphasizing the importance of collaborative input to finalize the framework.

This draft, submitted by ex-Wapda distribution companies (XW-Discos), aligns with Nepra Licensing (Distribution) Regulations 2022 and the Competitive Trading Bilateral Contract Market (CTBCM) design. It reflects significant changes in the regulatory, structural, and technological landscape of Pakistan’s electricity sector.

The draft outlines protocols for restoring power after system shutdowns, emphasizing the maintenance of black start capabilities. DNOs are required to notify the System Operator of any changes to their black start facilities, ensuring effective coordination during outages. The framework also mandates that operational incidents affecting the distribution system be reported initially through verbal communication, followed by written documentation. In cases involving multiple users or operators, joint investigations will be conducted to identify and resolve issues collaboratively. Safety is a central focus of the updated code, which requires DNOs to maintain approved Safety Management Systems to protect personnel working on high-voltage equipment. These protocols aim to reduce risks at connection points and ensure compliance with stringent safety standards. Additionally, the code introduces systematic testing and monitoring requirements to maintain the safety and performance of distribution systems. The guidelines also address load management during emergencies, establishing clear procedures for equitable load shedding and effective commercial load allocation. By improving system monitoring and coordination, the code seeks to reduce disruptions and provide a more reliable energy supply to consumers. Nepra has urged all stakeholders, including power producers, DNOs, and bulk power consumers, to thoroughly review the draft and provide their input. This participatory approach is designed to ensure that the regulatory framework is practical, effective, and aligned with the evolving demands of the electricity sector. Once approved, the Distribution Code 2024 will serve as a cornerstone for ongoing energy reforms, driving the transition to a safer, more efficient, and resilient power distribution system across Pakistan.