Islamabad - Sindh has alleged that NTDC, CPPA have established monopoly over the transmission system and the bureaucrats sitting in Islamabad are creating hurdles in the development of the province and generation and transmission of cheaper electricity.

Sindh has the solution for the country’s energy crisis and generation of cheaper and affordable electricity but hurdles are being created in its materialisation, said Sindh’s Energy Minister Imtiaz Shaikh while arguing in NEPRA’s hearing and later talking to media.

The provincial minister made these remarks during NEPRA’s hearing on the petition filed by Sindh Transmission and Dispatch Company (Private) Limited (STDC) for the Special Purpose Transmission Licence. In Pursuant to Section 18A of the Amendment Act, STDC had requested that “the NEPRA Authority may grant a license authorising a company owned by a Provincial Government to engage in the transmission of electric power within the territorial limits of such Province subject to meeting the defined eligibility criteria”.

As per the petition the Sindh government will construct a new provincial transmission network in the wind corridor to harness the wind power potential. The proposed new network would complement the national grid capacity and provide carrier facility and wheeling service to all potential investors interested in the development of the wind corridor, said the petition.

Bureaucrats sitting in Islamabad are creating hurdles in generation, transmission of cheaper electricity

The hearing was presided over by NEPRA Chairman, Tauseef H Farooqi. Sindh Energy Minister Imtiaz Shaikh pleaded during hearing that the province should be granted transmission licence as it was their constitutional right. He said that due to the NTDC transmission constraints they have applied for the provincial transmission licence.

Chairman NEPRA questioned that whether granting a transmission licence to STDC would cause any controversy between NTDC and STDC. “Do we have the conflict resolution mechanism in NEPRA act,” NEPRA chairman asked. Official of STDC informed that yes NEPRA act provide mechanism for the resolution.

However the Sindh’s petition was opposed by NTDC and CPPA. Official of NTDC said that this petition is incomplete and cannot be heard by NEPRA. For the setting up of any new institution in the power sector requires the approval of the CCI. The NEPRA licencing system is not enough to grant permission for the provincial grid company, NTDC MD said. He said that they are not against the establishment of the provincial grid company system requires for the provincial grid company doesn’t exist.

The CPPA official said that the CCI doesn’t know about these matters. However later he regretted over his remarks.

Sindh Provincial minister said that the Federal government is neither doing anything itself nor letting the provincial government to do something.”We are demanding the setting up the Provincial transmission company via the same rules under which NTDC was established and even then they are opposing it,”. 

Imtiaz Shaikh said that the opposition from NTDC and CPPA is deplorable. The federal institution NTDC and CPPA are opposing because their monopoly was challenged by the petition, he said. He said that the Baboos sitting in Islamabad are opposing the provincial projects. Imtiaz Shaikh said that 15 of the provincial projects are facing delay due to NTDC.

He said that the Keti Bandar-Gharo-Jhimpir wind corridor has the potential to generate 50,000 megawatts of electricity, but insufficient national transmission grid capacity is severely hampering development and exploitation of these huge natural resources. He said that they will defeat the Federal Baboos in NEPRA and if the matter was not resolved here they will go to CCI for its resolution. After hearing NEPRA has reserved it judgment.