Power sector in Pakistan is dominated by Public generation, distribution and transmission companies, along with Independent power producers who contribute around 42% of total generation in the country.
WAPDA was established in 1958 as a semi-autonomous body for the purpose of coordinating and giving a unified direction to the development of schemes in water and power sectors, which were previously being dealt with, by the respective electricity and irrigation department of the provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is now responsible for water and hydropower development.
The Private Power and Infrastructure Board (PPIB) was created in 1994 as “One Window Facilitator” to promote private sector participation in the power sector of Pakistan. PPIB facilitates investors in establishing private power projects and related infrastructure, executes Implementation Agreement (IA) with Project Sponsors and issues sovereign guarantees on behalf of Government of Pakistan.
K-Electric, previously Karachi Electric Supply Company Limited was incorporated on 13th September 1913 under the Indian Companies Act, 1882, as amended to date vide the Companies Ordinance 1984. The company is listed on Karachi, Lahore and Islamabad stock exchanges. The Government of Pakistan took control of the company by acquiring majority shareholding in 1952. The Ministry of Water and Power looks after the affairs of the company at federal level. The company has been privatized in November 2005 with the transfer of 73% shares of the Government of Pakistan along with Management Control to the new owner viz M/s KES Power & others.
The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted the task of managing the transition of WAPDA from a bureaucratic structure to a corporate, commercially viable and productive entity. It is a mammoth task and progress in the initial months was rather slow, but one should keep in mind that responsibility is enormous and transition is a long drawn process.
The Government of Pakistan in line with its Strategic Plan of 1992 approved by the cabinet committee, had decided to restructure the entire power sector in the country i.e.
- De-regulation of power sector
- Promotion of IPPs
- Restructuring of WAPDA
- Privatization of select corporate entities
PEPCO is responsible for the management of all the affairs of WAPDA’s twelve public limited companies in the areas of thermal power generation, transmission, distribution and billing. These Twelve (12) corporate entities are:
Thermal Power Generation Companies (GENCOs)
- Jamshoro Power Generation Company Limited (GENCO-1)
- Central Power Generation Company Limited (GENCO-2)
- Northern Power Generation Company Limited (GENCO-3)
- Lakhra Power Generation Company Limited (GENCO-IV)
National Transmission & Power Dispatch Company (NTDC)
- National Transmission & Dispatch Company (NTDC) Limited was incorporated on 6th November, 1998 and commenced commercial operation on 24th December, 1998. It was organized to take over all the properties, rights and assets obligations and liabilities of 220 KV and 500KV Grid Stations and Transmission Lines/Network owned by Pakistan Water and Power Development Authority (WAPDA). NTDC operates and maintains twelve 500 KV and twenty nine 220 KV Grid Stations, 5077 km of 500 KV transmission line and 7359 km of 220 KV transmission line in Pakistan.
- NTDC was granted Transmission License No.TL/01//2002 on 31st December 2002 by National Electric Power Regularity Authority (NEPRA) to engage in the exclusive transmission business for a term of thirty (30) years, pursuant to Section 17 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
Distribution Companies (Discos) as under:
- Lahore Electric Supply Company (LESCO)
- Gujranwala Electric Power Company (GEPCO)
- Faisalabad Electric Supply Company (FESCO)
- Islamabad Electric Supply Company (IESCO)
- Multan Electric Power Company (MEPCO)
- Peshawar Electric Power Company (PESCO)
- Hyderabad Electric Supply Company (HESCO)
- Sukkur Electric Power Company (SEPCO)
- Quetta Electric Supply Company (QESCO)
National Electric Power Regulatory Authority (NEPRA) issues Licenses for generation, transmission and distribution of electric Power, establishes and enforces Standards to ensure quality and safety of operation and supply of electric power to consumers, approves investment and power acquisition programs of the utility companies and determines Tariffs for generation, transmission and distribution of electric power.
The Pakistan Atomic Energy Commission (PAEC) is responsible for all nuclear energy and research applications in the country. Its first nuclear power reactor is a small 137 MW (125 MW net) Canadian pressurized heavy water reactor (PHWR) which started up in 1971 and which is under international safeguards – KANUPP near Karachi. It is operated at reduced power.
The second unit is Chashma-1 in Punjab in the north, a 325 MW 2-loop pressurized water reactor (PWR) supplied by China’s CNNC under safeguards. The main part of the plant was designed by Shanghai Nuclear Engineering Research and Design Institute (SNERDI), based on Qinshan-1. It started up in May 2000 and is also known as CHASNUPP-1. Designed life span is 40 years. It, and the following 3 units, were built using international design codes and Standards. Construction of its twin, Chashma-2, started in December 2005. It is reported to cost PKR 51.46 billion (US$ 860 million, with $350 million of this financed by China). A safeguards agreement with IAEA was signed in 2006 and grid connection was in March 2011, with commercial operation in May.