PAKISTAN Law and Practice Contributed by: Nadir Altaf and Muhammad Fahim Khan, RIAA Barker Gillette
• the NEPRA (Microgrid) Regulations 2022; • National Electric Power Regulatory Author- ity Consumer Eligibility Criteria (Distribution
applicable if the licensee’s network is con- nected to the national grid); • environmental approvals – issued after suc- cessful application to the relevant EPA, follow- ing an Environmental Impact Assessment; and • other project-specific approvals. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities The terms and conditions for the construction and operation of distribution facilities are set out in the distribution licence issued by NEPRA (or are implied therein by the Distribution Licensing Rules). These terms and conditions include: • term and renewal of the licence; • licence fee payment; • exclusivity (if granted); • requirement to only charge the tariff deter- mined by NEPRA; • obligation to work towards the implementa- tion and operation of the CTBCM; • obligation to offer terms; • obligation to offer non-discriminatory open- access transmission interconnection service to any party; • requirement to comply with the “applicable documents”, which include the relevant laws, the Grid Code and the Distribution Code; • requirement to maintain accounts and records; • prohibition of investment and acquisitions except in accordance with NEPRA-approved investment plans; • prohibition of abandonment of the distribution business; • requirement to comply with the applicable performance and environmental standards;
Licensees) Regulations 2022; • the Distribution Code 2005; • PEC by-laws; and • the Electricity Act 1910. NEPRA Laws
No person can construct or operate a distribu- tion project unless they have a licence to do so from NEPRA. Licence holders must construct the distribution facilities as per the approved parameters. Microgrids have separate regulations regard- ing issuance of licences. These regulations also stipulate conditions regarding connection of microgrids to the national grid. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities The following are the key consents required for the construction and operation of distribution facilities: • distribution licence – issued after successful application to NEPRA under the NEPRA Act and the Distribution Licensing Rules; • distribution tariff – issued after successful application to NEPRA under the NEPRA Act and the Tariff Rules; • project agreements, including: (a) power purchase agreement(s) – entered into with electric power suppliers (genera- tion companies and other suppliers); and (b) land rights – land rights may be acquired by the government under the Acquisition Act or in the form of leases/rights of way; • grid interconnection study approval – issued by the NTDC after reviewing the study (only
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