ISLAMABAD, Sept 5: The National Electric Power Regulatory Authority (Nepra) has granted generation licences to twelve IPPs presently operating in the country, an announcement by the authority said.

After the establishment of Nepra to regulate the Electricity Power sector, it has been made mandatory for the IPPs to get licence from Nepra.

Justifying the grant of licences to IPPs for power generation, the Nepra said that had the IPPs’ long-term contracts been terminated, it might have resulted in disruption of service to a large section of consumers as well as serious financial consequences (amounting to billions of US dollars) for the government and the utilities. “Nepra, therefore, had to accommodate the long-term contracts of the IPPs which are backed by sovereign guarantees of the government.”

The IPP which were granted licences are Fauji Kabirwala Power Co. Ltd; AES Lalpir (Pvt) Ltd; AES Pak Gen (Pvt). Company; TNb Liberty Power Limited; Gul Ahmed Energy Limited; Tapal Energy (Pvt) Ltd; Saba Power Company (Pvt) Ltd; Habibullah Coastal Power (Pvt) Co; The Hub Power Company Ltd.; UCH Power Ltd; Rousch (Pakistan) Power Ltd and Kohinoor Energy Ltd.

The Nepra maintained that such foreign investment in power sector was necessary, but it should not be accepted in a manner which would impose unbearable burden on the consumer or distort the pricing of electricity particularly in industry and agriculture.

Nepra, however, advised the Government that once it( Nepra) had determined the tariff, there should be no further provision of government guarantees.

The licensed IPPs are required to comply with requirements of the regulatory regime established in 1997 through the promulgation of the Nepra Act.

Nepra is also considering generation licence applications by three other IPPs namely Japan Power Generation Ltd., Southern Electric Power Col. Ltd. and Altern Energy Ltd.

With the grant of generation licences to the 12 IPPs, a major portion of the power generation infrastructure in the country is now licensed. The National Transmission and Dispatch Company (NTDC), eight (ex-Wapda) distribution companies and KESC have already been granted licences by Nepra.