CPPA seeks fee hike

KARACHI: Central Power Purchasing Agency (CPPA) has approached the National Electric Power Regulatory Authority (NEPRA) seeking 54.8 percent increase in market operator fee to Rs3.002kwh/month for the fiscal year 2020-21.

CPPA in its petition noted the agency’s revenue requirements for FY2020-21 were estimated at Rs853.61 million compared with Rs601.81 in the last fiscal year.

In order to meet with the expenses for discharging the functions and plans mentioned, CPPA requires revenue to be approved by the NEPRA.

CPPA has sought Rs695.46 million under general establishment costs and Rs184.44 million as administrative costs. General establishment costs includes cost associated with pay and allowances and other benefits of the employees, training and capacity building cost and cost regarding consultancy services.

It may be mentioned here that a detailed restructuring plan has been prepared by CPPA with the assistance of international consultants for the organisation’s development.

CPPA in assistance with the international market development consultants has been developing the detailed design of market operator and special

purpose supplier that are foreseen as the mandatory components of the proposed wholesale electricity market.

CPPA has also engaged a Business Process Reengineering (BPR) expert to evaluate the existing processes and design the optimum business processes associated with the operations of the new business units.

“Power sector of Pakistan stands at the decisive turn towards an efficient market reform with the vision to channelize the revolutionary opportunities and address challenges while striving for enhanced efficiency and transparency,” CPPA’s last annual report noted.

“With the resolve to facilitate implementation of wholesale competitive market, CPPA has been actively engaged in formulation of working groups across the sector to achieve synergy with various organisation’s aimed at catalyzing required processes and functions.”

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