PAKISTAN Law and Practice Contributed by: Nadir Altaf and Muhammad Fahim Khan, RIAA Barker Gillette
4.6 Transmission Charges and Terms of Service The tariff for transmission services is determined by NEPRA pursuant to the NEPRA Act and the Tariff Rules. NEPRA determines the tariff for transmission services by taking into account the following: • revenue requirements; • investment and expansion requirements; and • operation and maintenance requirements. Pursuant to the terms of the transmission licences (see Articles 25, 26 and 27 of the NTDC’s licence and Articles 9 of K-Electric Limited’s licence), licensees are required to provide transmission services on an open-access and non-discrimi- natory basis. As the licensing authority, NEPRA is responsible for policing the licensees’ compli- ance with these obligations. The same is also mandated under the Open Access Regulations. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities The construction and operation of distribution facilities is regulated pursuant to: • the NEPRA Act; • the Distribution Licensing Rules; • the Distribution Performance Standards Rules; • the Tariff Rules; • the Eligibility Rules; • the National Electric Power Regulatory Authority Licensing (Distribution) Regulations 2022; 4.7 Open-Access and Non- Discriminatory Transmission
• exclusivity (if granted); • requirement to only charge the tariff deter- mined by NEPRA; and • obligation to work towards implementation and operation of the CTBCM. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Rights over the land required for the construc- tion and operation of transmission facilities are acquired in the following ways: • acquisition by the government under the Acquisition Act; • acquisition pursuant to the WAPDA Act; • acquisition as a freehold by the transmission company; • acquisition as a leasehold by the transmission company; and • acquisition of rights of way (through contrac- tual licence) by the transmission company. 4.5 Monopoly Rights to Provide Transmission Services The NTDC enjoys the exclusive right to provide transmission services within its service territory. Although K-Electric Limited also enjoyed the exclusive right to provide transmission services within its service territory, this right no longer exists in the licence granted to K-Electric after the promulgation of the 2018 Amendment Act. However, in order to foster greater competition, the 2018 Amendment Act has ended the manda- tory requirement for issuance of exclusive licenc- es. Accordingly, once licences granted prior to the amendment have expired, it is expected that future licences will no longer grant exclusivity to special purpose transmission licensees.
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