ISLAMABAD: The Ministry of Energy (Power Division) has constituted a 10-member high-level inter-provincial technical committee to tailor the draft national electricity policy and first five-year electricity plan in the light of the decision of the Council of Common Interests (CCI).

The committee to be headed by Joint Secretary Power Policy and Finance, Power Division, will comprise Secretary, Energy Department, Government of Khyber Pakhtunkhwa, Secretary Energy Department, Government of Balochistan, Secretary Energy Department, Government of Sindh, Secretary Energy Department, Government of Punjab, Managing Director NTDCL, Managing Director PPIB, Chief Executive Officer AEDB, Chief Executive Officer Central Power Purchasing Agency, Guarantee Ltd, and representative from NEPRA.

The terms of reference (ToRs) of the committee will be as follows: (i) to develop first draft of policy for approval of the CCI including, with respect to; (a) electricity generation; (b) establishment of a market operator; (c) wholesale trading of electricity; (d) transmission of electricity; (e) distribution of electricity; (f) establishment of a retail market for electricity; and (g) any other relevant area.

The terms of reference (ToRs) of the committee to develop first draft of five years plan to be approved and notified by the federal government, including, without limitation, for the following aspects of the power sector: (a) generation, including timeline for de-licensing generation plants, enhancement of net-metering regime, improving the generation mix, improving pricing methods, share of provincial generation in national grid, encouraging efficiency, etc; (ii) transition of the power market into a competitive multi-buyer regime, improvement in settlement and clearing function, establishment of a settlement guarantee fund, encouraging trading of electricity on an exchange, moving away from CPPA-G as purchasing agent of distribution companies, etc; (iii) development of a wholesale trading market in electricity, including incentivizing trader licenses, timeline for initiation of wholesale market, trading limits of wholesale traders, etc; (iv) role of PPIB and AEDB after establishment of a competitive market regime in the power sector of Pakistan; (v) transmission, including system improvements, timeline and manner of segregation of system operator from NTDC, establishment of an efficient and professional system operator, etc; (vi) distribution, including possible de-merger of larger DISCOs, investment plan to improve efficiencies, role of provincial governments in improving efficiencies, segregation of retail function in a phased manner from distribution companies, etc; (vii) establishment of a retail power market, manner of making retail function operative independently of Discos , incentivizing trader licenses, etc and; (viii) power sector finance, including circular debt management and reduction, securitization of debt, enhancement of capital market investment, financing and borrowing in the sector, etc.

The committee can co-opt any additional member and/or consultants for facilitation/ any specific requirements and submit its report for onward consideration of the CCI.—MUSHTAQ GHUMMAN