energy regulations pakistan
TRANSCRIPT
1
Energy Regulations Energy Regulations in Pakistan: Recent in Pakistan: Recent
DevelopmentsDevelopments
“Energy: Sustainable Access for All”“Energy: Sustainable Access for All” World Consumer Rights Day-March 2006World Consumer Rights Day-March 2006
Muhammad Aftab AlamMuhammad Aftab AlamConsumer Rights Commission of Consumer Rights Commission of
PakistanPakistan
2
Energy Regulations-An Energy Regulations-An Introduction Introduction
Consumers and Energy Sector Consumers and Energy Sector Regulation Regulation
Past: Public Sector Monopolies like Past: Public Sector Monopolies like WAPDA, KESC, SNGPL, and SSGCLWAPDA, KESC, SNGPL, and SSGCL
Legal and Infrastructural Reforms in Legal and Infrastructural Reforms in Power Sector during 1990sPower Sector during 1990s
Inclusion of Independent Power Inclusion of Independent Power Producers (IPPs)Producers (IPPs)
Unbundling of big state-owned Unbundling of big state-owned monopoliesmonopolies
3
Energy Regulations-New Energy Regulations-New Regime Regime
National Electric Power National Electric Power Regulatory Regulatory Authority (NEPRA) Authority (NEPRA) 19971997
Natural Gas Regulatory Natural Gas Regulatory Authority Authority (NGRA), (NGRA), 20012001
Oil and Gas Regulatory Oil and Gas Regulatory Authority Authority (OGRA), (OGRA), 20022002
De-regulation of Petroleum De-regulation of Petroleum PricesPrices
4
NEPRANEPRA Mission StatementMission Statement……ensures the provision of safe, reliable, ensures the provision of safe, reliable,
efficient and affordable electric power efficient and affordable electric power to the electricity consumers of to the electricity consumers of Pakistan…Pakistan…
Section 7 (6) of the NEPRA Act, Section 7 (6) of the NEPRA Act, 19971997
…the Authority shall, as far as practicable, protect the interests of consumers …
5
OGRAOGRA Mission StatementMission Statement……Protect the Public interest while Protect the Public interest while
respecting Individual Rights by ensuring respecting Individual Rights by ensuring Effective, Efficient and Equitable Effective, Efficient and Equitable Regulatory Environment. Regulatory Environment.
Section 6 (2Q) of OGRA Ordinance, Section 6 (2Q) of OGRA Ordinance, 20022002
……Protect the Public interest while Protect the Public interest while respecting Individual Rights by ensuring respecting Individual Rights by ensuring Effective, Efficient and Equitable Effective, Efficient and Equitable Regulatory Environment.Regulatory Environment.
6
Functions of RegulatorsFunctions of Regulators
Licensing Licensing Tariff DeterminationTariff Determination
Performance Standards of Utilities Performance Standards of Utilities
Complaints against the UtilitiesComplaints against the Utilities
Public HearingPublic Hearing
Transparency and OpennessTransparency and Openness
7
Issues in RegulationsIssues in Regulations
Autonomous and Independent Autonomous and Independent RegulatorsRegulators
Internal Issues: Lack of Internal Issues: Lack of ownership by the sectorownership by the sector
External Issues: Pressure from External Issues: Pressure from the investors for weak the investors for weak regulationsregulations
Government InterventionsGovernment Interventions Policy Guidelines or Policy Policy Guidelines or Policy
DirectivesDirectives
8
Policy Guidelines for Policy Guidelines for RegulatorsRegulators
Guidelines of Federal Government: NEPRA
Section 7: Powers and functions of the Authority
(6) In performing its functions under this Act, the Authority shall, as far as practicable, protect the interests of consumers and companies providing electric power services in accordance with guidelines, not inconsistent with the provisions of this Act, laid down by the Federal Government.
9
Policy Guidelines for RegulatorsPolicy Guidelines for Regulators (Contd.)(Contd.)
Guidelines of Federal Government: OGRA
Section 21: Power of Federal Government to Issue Policy Guidelines
The Federal Government may issue policy guidelines on the matters of policy not inconsistent with the provision of this Ordinance
10
Recent Developments: Recent Developments: NEPRANEPRA
New IPPs Regime: 47 new power generation New IPPs Regime: 47 new power generation companiescompanies
Guidelines for Determination of Tariff for IPPs Guidelines for Determination of Tariff for IPPs (November 2005, Ministry of Water and (November 2005, Ministry of Water and Power)Power)
1.2 (a) NEPRA should now determine an up-1.2 (a) NEPRA should now determine an up-front tarifffront tariff [for IIPs without any public [for IIPs without any public consultation]consultation]
Proposed NEPRA Amendments without Public Proposed NEPRA Amendments without Public Consultation-proposed draft not made publicConsultation-proposed draft not made public
11
Recent Developments: Recent Developments: OGRAOGRA
Amendments in OGRA Ordinance [no Amendments in OGRA Ordinance [no public consultation]public consultation]
Recent Cabinet Decision on Recent Cabinet Decision on Determination of Petroleum PricesDetermination of Petroleum Prices
Issues Issues Preparation of Regulations/Rules to Preparation of Regulations/Rules to
determine the Petroleum Prices [after determine the Petroleum Prices [after consulting all stakeholders] consulting all stakeholders]
Public representation/participation in Public representation/participation in prices determinationprices determination
Transparency and openness Transparency and openness
12
ThanksThanks