ISLAMABAD: Federal Minister Power Division Sardar Awais Ahmed Khan Leghari has taken serious notice regarding the off-take of power from Small Power Producers (SPPs)/Captive Power Plants (CPPs) by the DISCOs at tariffs exceeding the prevailing national merit order.
The matter was revealed during a stock taking of DISCOs today. The Federal Minister directed that the practice be brought in accordance with the provisions of the National Electric Power Regulatory Authority (NEPRA) Grid Code, Distribution Code, and directions.
The Federal Minister also ordered an inquiry into the matter. The Federal Minister also directed to coordinate with ISMO for the inclusion of Small Power Producers (SPPs)/Captive Power Plants (CPPs) to ensure the least cost for the consumer in the dispatch of power plants on the basis of Economic Merit Order (EMO) principles.
In compliance with the Federal Minister for Power’s directions, the Power Division has issued instructions to all DISCOs to ensure that no off-merit procurement from SPPs shall be undertaken under any circumstances without obtaining prior explicit approval from ISMO.
The Off-take of electricity from SPPs shall be strictly limited to cases where such power falls within the prevailing national merit order, determined on the basis of incremental cost of generation by following the prescribed mechanism.
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