The current market structure is single buyer. CPPA-G has been given the mandate from NEPRA and GoP to facilitate the power market in its gradual transition from the current Single Buyer Model to the Competitive regime.
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:
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
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