Amid the Iran-US conflict, the National Electric Power Regulatory Authority (Nepra) has approved additional electricity import from Iran to meet demand in Balochistan.

Under a formula Pakistan will have to pay 9.2 US cents for every unit (kWh) of electricity to Iran if the price remains below $100 per barrel. The per-unit cost could increase to 11 cents if international oil prices exceed $100 per barrel.

The Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) submitted an application to the authority on September 12, 2023, seeking approval of the tariff for the supply of 104 MW, along with an additional 100 MW of electricity from Iran’s state owned power utility TAVANIR.

CPPA-G had submitted the application in accordance with a decision of the Economic Coordination Committee (ECC) dated August 7, 2023. The application included duly signed amendments relating to revisions in the supply arrangements and tariff structure.

Subsequently, CPPA-G provided further submissions on December 28, 2024, including detailed information on the proposed amendments and their salient features.

The Economic Coordination Committee (ECC) of the Cabinet, while considering the summary submitted by the Power Division, approved the proposal in August 2023.

It authorized the execution and submission to the authority of amendments between CPPA-G and TAVANIR, empowering CPPA-G to act as power purchaser on behalf of the Government of Pakistan for electricity import.

Later, CPPA-G filed the instant application before the authority on September 12, 2023, seeking approval of an extension in tariff for the existing supply of 104 MW (as already determined by the authority) and approval of the tariff for the additional 100 MW supply agreed under the amendments.

In a decision, the power regulator expressed concern that CPPA-G has repeatedly followed a pattern of submitting requests for approval of tariff extensions and contractual amendments with significant delays, often after the relevant period had already commenced or, in some cases, substantially elapsed.

In the instant matter, CPPA-G submitted the request for approval of tariff extension in September 2023, whereas the same pertains to continued supply effective from January 2022 through 31 December 2024.

The power regulator directed CPPA-G, QESCO, ISMO, and NGC to jointly develop and submit a comprehensive and coordinated roadmap for the electric power supply plan for the concerned regions within six months after this order is issued.

This roadmap shall be based on a holistic study and shall include, but not be limited to a detailed assessment of system reliability and security, including economic evaluation and risk mitigation measures.

It also directed identification and development of indigenous, secure, viable, and diversified supply options to ensure long-term energy security.

Nepra also calls for prudent and rationalized need assessment, including demand growth and load forecasting; and a clear institutional coordination mechanism for the development and implementation of the proposed plan.