NTDC opposes Sindh embarking on power transmission business

KARACHI: The National Transmission Dispatch Company (NTDC) opposed the entry of its competing firm backed by Sindh into the province, anticipating conflict of interest in case of grant of a power evacuation licence, The News learnt on Friday.

Official documents showed that the NTDC opposed the application of Sindh Transmission and Dispatch Company (STDC) for grant of licence as provincial grid company. NTDC has already been awarded service territory of entire country, excluding Karachi.

NTDC, in a feedback to the STDC’s application for licence, said NTDC has already been awarded exclusive transmission licence by the National Electric Power Regulatory Authority (Nepra) to NTDC on 31 December 2002 for 30 years. The licence is valid up to 30 December, 2032.

“Granting of a parallel transmission licence to any company owned by the provincial government will lead to a conflicting situation and will render the exclusivity of NTDC's transmission licence redundant,” the transmission company said in a document.

STDC applied for transmission licence with the National Electric Power Regulatory Authority (Nepra) to expand its transmission network catering to Keti-Bandar-Gharo-Jhimpir wind corridor. STDC planned to construct a new transmission network in the wind corridor to evacuate the potential 50,000 megawatts wind power.

The Nepra would discuss the STDC’s licence application in a hearing scheduled for September 4. NTDC said STDC did not provide the mandatory feasibility report specifying the details such as type, technology, design and expected life of the system. STDC has also failed to provide the location of the facility or the system, or the territory with outer boundaries within which the facilities or the system is proposed to be installed and operated by STDC; as well as the type and details of the services proposed to be provided, it added.

NTDC further said the federal government is authorised to prescribe eligibility criteria for grant of licence as a provincial grid company under the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997.

“As of now, such eligibility criteria have not been prescribed by the federal government, and in the absence of the prescribed eligibility criteria, it is imperative that the licence for the provincial grid company could not be issued to any applicant,” it said.

NTDC is mandated to prepare indicative generation capacity expansion plan (IGCEP), considering the demand and supply position of the country, as per the ‘grid code’. “Hence, prior to any commitment with the new projects, endorsement of site, size and technology and timing should be aligned with IGCEP prepared by NTDC and renewable energy policy under discussion with Ministry of Energy (Power Division),” it said.

The transmission firm said since STDC intends to transmit power to the existing grids of Hyderabad Electric Supply Company and Sukkur Electric Power Company, the electricity through the proposed provincial grid company would be injected into the national grid. “This calls for an interaction of the provincial government with the federal entities.”

Engro Energy Limited supported the STDC’s application for the licence to set up its own transmission network and serve the bulk power consumers in the bilateral market with affordable and reliable electricity.