Central
Power Purchasing Agency (CPPA-G) is a Company incorporated under the Companies
Ordinance, 1984 and wholly owned by the Government of Pakistan (the “GOP”). Since June 2015, CPPA-G has assumed the business of National Transmission and Dispatch Company (the “NTDC”) pertaining to the market
operations and presently functioning as the Market Operator in accordance with
Rule-5 of the NEPRA Market Operator (Registration, Standards and Procedure)
Rules, 2015 (the “Market Rules”).
The Company is currently performing eight
major functions segregated into six core and two support functions. The core
functions include (i) settlement, (ii) power procurement on behalf of DISCOs,
(iii) finance, (iv) legal and corporate affairs, (v) strategy and market development,
(vi) monitoring and coordination. The support functions include (vii) human
resource management and (viii) information technology.
The CPPA-G being the Market Operator is
facilitating the power market transition from the current single buyer to
competitive market. While changing the market model, the overall strategy is to
bring efficiency through competition in generation and retail, while transmission
and distribution wire business remains regulated as they are natural monopolies. The objectives to evolve the market
models are the following:
- 1. Search for efficiency, as the traditional model has no or
insignificant incentives for reducing costs and making prudent investments
- 2. Facilitate the financing of the power sector, introducing
dynamic and creditworthy players
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- 3. Increased efficiency and appropriate financing ultimately
should lead to lower tariffs and better service quality for end users
The main tasks performed by the company are as follows:
1. Perform the business of billing and settlement
2. Procurement of electric power on behalf of the DISCOs, including
import of power from other countries. Also perform the demand aggregation function
- 3. Generation invoice verification on the basis of meter
reading or dispatch scheduling report and terms of the respective Power
Purchase Agreements
- 4. Billing to the DISCOs, based on the meter readings at Common
Delivery Points as per the procedure defined in the Commercial Code
- 5. Collection from the DISCOs and settlement to the Market
Participants as per the Commercial Code
- 6. Management of cash flow, treasury management of cash flow,
treasury management and other relevant banking functions for the purposes of
collection and disbursement as per the Commercial Code
- 7. Updating, implementing, administering and enforcing the
Commercial Code in relation to the Market Rules.
- 8. Administering the development of and amendments to the
Commercial Code for submission to NEPRA for approval.
- 9. Collecting information and statistics and publishing reports
and information relating to the performance of the Market 10. Operator administered
market.
- 11. Developing and implementing competitive power markets based
on policies guidelines of the Federal Government and/or requirements of NEPRA.
- 12. Liaising with other bodies having market functions similar
to the Market Operator or administering competitive power markets
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- 13. Other functions as per provisions under the Commercial Code