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CPPA was created by Government of Pakistan under Restructuring of Power Sector, in 1992.

CPPA Important Facts. CPPA was created by Government of Pakistan under Restructuring of Power Sector, in 1992. Working as an agent of NTDC, CPPA is mandated to buy each unit of generated electricity for DISCOs .

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CPPA was created by Government of Pakistan under Restructuring of Power Sector, in 1992.

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  1. CPPA Important Facts • CPPA was created by Government of Pakistan under Restructuring of Power Sector, in 1992. • Working as an agent of NTDC, CPPA is mandated to buy each unit of generated electricity for DISCOs. • It is a seller of electrical energy to whole sale purchasers i.e. DISCOs and Bulk Power Consumers including KESC. • CPPA is an entity with Zero Asset and Zero Liability; it manages its business through wheeling charges. 1 CPPA

  2. CPPA Existing Organizational Structure Managing Director Staff Officer Technical Chief Operating Officer/ General Manage.0r Chief Engineer Settlement Deputy G. M. Finance Chief Engineer Procurement Director General IT Manager L&CA (4) Manager Tech (3) Manager Tech (2) Manager IT (2) Manager (4) Manager HR&A (4) D.M (5) A.M (5) D.M (2) A.M (2) D.M (4) A.M (4) D.M (4) A.M (4) D.M (7) A.M (13) 2 CPPA Central Power Purchasing Agency (CPPA)

  3. Vision Pakistan has the immense potential to emerge, sustain and be acknowledged as the best electric power market, in South Asia, facilitating win-win-win situation for investors, customers as well as utilityprofessionals. 3 CPPA

  4. Mission We undertake to procure each unit of electricity produced from different sources and to sell it to DISCOs and bulk consumers to offset the prevailing demand- supply contrast. 4 CPPA

  5. Strategic Goal CPPA to be acknowledged as a trusted, professional and efficient agency owing to its internationally accepted working procedures, non-discriminatory and transparent business operations, and excellent performance standards. 5 5 Central Power Purchasing Agency CPPA

  6. Objectives • Ensure verification of invoices from generators (IPPs, GENCOs and WAPDA Hydel plants) • Execute settlement functions (Billing to DISCOs and bulk consumers including KESC under NEPRA determined mechanism) • Monitor functioning of different role players (Generators, NTDC and Purchasers); suggest changes in the SOPs • Enter into Energy Purchase Agreements with sponsors of RE projects 6 CPPA

  7. Core Responsibility CPPA is primarily responsible for purchasing power from all generators located throughout Pakistan excluding Karachi and selling it to all DISCOs and bulk consumers including KESC. Thermal - Natural Gas Hydel Thermal - Coal Thermal – Furnace Oil Renewable Thermal -Nuclear 7 CPPA

  8. CPPA’s Functions • Manage networking of CDPs for collection of energy data • Monitor functioning of meters installed at CDPs with grid users (GENCOs, IPPs and DISCOs) • Undertake corrective measures for metering systems errors • Establish Operating Committees, Metering Committees and Interconnection Committees for all IPPs • Reconcile and process energy data received from Metering Committees (NTDC, IPPs & DISCOs) • Monitor compliance with respective PPA/EPA 8 CPPA

  9. CPPA’s Functions (Continued) • Setup teams to witness generators’ Commissioning Tests and Annual Dependable Capacity Tests • Process and execute necessary amendments to PPAs • Co-ordinate with Planning Power for technical studies • Participate in NEPRA public hearings on multiple aspects • Co-ordinate with various NTDC departments for arrangement of interconnection facilities 9 CPPA Central Power Purchasing Agency (CPPA)

  10. IPPs Under 2002 Power Policy 10 CPPA Central Power Purchasing Agency (CPPA)

  11. Upcoming IPPs Under 2002 P. Policy 11 CPPA Central Power Purchasing Agency (CPPA)

  12. Renewable Perspective • Coordinate NEPRA for: • Issuance of Generation Licenses • Tariff determination • Maintain close liaison with AEDB on: • Capacity building on Renewable Energy (RE) technologies • Actualizing of CER for RE Projects • Development of RE projects • Support DISCOs, Punjab Power Development Board and AJK Power Development Board for developing of small hydro power projects • Draft and negotiate EPAs with sponsors • Manage EPAs of completed projects 12 CPPA

  13. Status of Wind Power Projects • 22 IPPs with 1,104 MW of Wind Energy are on the way. • 8 IPPs have so far acquired Generation Licenses. • NEPRA has approved tariff for 8 IPPs. • CPPA is negotiating standard draft EPA with several IPPs. • EPA was signed with FFCEL in April 2011. • EPA was signed with ZEPL in January 2012. 13 CPPA Central Power Purchasing Agency (CPPA)

  14. NEPRA Determined Tariff - Wind Projects 14 CPPA

  15. Upcoming Solar Power Projects 15 CPPA

  16. Flow of Revenue Cycle 1 • Verify bills from generators & compute payments 2 • Evaluate price chargeable to DISCOs & bulk consumers 3 • Bill to DISCOs, KESC and bulk consumers 4 • Collection of funds against bills issued by CPPA 5 • Monthly disbursal of funds to the generators 16 CPPA

  17. IPPS’s Invoices Verification Process Verification of Monthly Energy Purchase Price (EPP) Invoices Verification of Monthly Capacity Purchase Price (CPP) Invoices Verification of Monthly Supplementary Invoices (Markup, WPPF, WWF, etc.) • Preparation of Liquidated Damage • Invoices 17 CPPA

  18. GENCOs & WAPDA Hydel Invoicing • Verification of Energy Purchase Price Invoices (EPP) Verification of Capacity Purchase Price Invoices (CPP) Supplementary Invoices claimed by the generators 18 CPPA Central Power Purchasing Agency (CPPA)

  19. Invoicing Process for DISCOs & IPPs • Calculation of Energy Transfer Rate • (ETR) & Capacity Transfer Price (CTR) Invoices to DISCOs and KESC for sale of electricity • Billing to IPPs against energy purchased • through NTDC network • Monitoring for recovery of amount billed • to DISCOs and KESC 19 CPPA Central Power Purchasing Agency (CPPA)

  20. Reconciliation & Disputes Resolution • Reconciliation of energy with generators • Reconciliation of energy with DISCOs Reconciliation of financial issues with IPPs • Resolve legal issues like arbitration proceedings under Article XV of the PPA (Dispute Procedure) • Resolve disputes/issues with IPPs under PPA 20 CPPA

  21. Objectives As Autonomous Entity • Maintain transparency • Ensure effective accountability • Exhibit non-discrimination among generators & customers • Achieve highest efficiency through corporate culture • Build industry standard capacity to manage business • Prepare and execute business plan • Mitigate cash shortfall risks • Monitor functioning of different role players • Develop formalized business standards and procedures 21 CPPA

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