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Todays Agenda

1. Background
2. CPPA - An Overview
3. A Snapshot of Major Functions
4. Some of Our Business Processes
5. Roadmap to the Future
6. Questions and Answers

CPPA

CPPA
1. Background

1.1 Restructuring of Power Sector


Protection

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a
r
e
n
Ge

Desig
n

Distribution

Pl
an
ni

ng

A
D
P
WA

CPPA

on
i
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CPPA

1.2 Components of NTDC

System
Operator

Transmi
ssion
Network
Operator

National
Transmi
ssion
and
Dispatch
Compan
y (NTDC)

Central Power
Purchase
Agency
Contract
s
Registrar
& Power
Exchang
e
Administ
rator

CPPA

1.3 Important Milestones


Expected in
near future

Autonomous functioning of CPPA

Jan. 2009

CPPA registered with Pakistan Security


Exchange

Feb. 2004

Launching of CPPA as a function of NTDC

Dec. 1998

Initiation of commercial operation by NTDC

Mar. 1958

Establishment of WAPDA

CPPA

CPPA
2. CPPA An Overview

2.1 Important Facts


1. CPPA was created by Government of Pakistan under

Restructuring of Power Sector in 1992.


2. Working as an agent of NTDC, CPPA is mandated to

buy each unit of generated electricity for DISCOs.


3. It is a seller of electrical energy to whole sale

purchasers i.e. DISCOs and Bulk Power Consumers


including KESC.
4. CPPA is an entity with Zero Asset and Zero Liability; it

manages it business through wheeling charges.

CPPA

2.2 Existing Organizational Structure


Managing Director
Staff Officer
Technical
Chief Operating Officer/
General Manager

Chief Engineer
Settlement

Chief Engineer Director General


Procurement
IT

Deputy G. M.
Finance

Manager Tech
(3)

Manager Tech
(2)

Manager IT
(2)

Manager
(4)

Manager HR&A
(4)

D.M (5)
A.M (5)

D.M (4)
A.M (4)

D.M (4)
A.M (4)

D.M (7)
A.M (13)

D.M (2)
A.M (2)

Central Power Purchasing Agency (CPPA)

Manager L&CA
(4)

CPPA

2.3 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 and utility professionals.

CPPA

2.4 Mission
We undertake to procure each
unit of electricity produced by
different sources and to sell it to
DISCOs and bulk consumers for
easing out the prevailing scarce
supply of electricity to the
consumers.

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CPPA

2.5 Strategic Goal


CPPA to be acknowledged as a
trusted, professional and efficient
agency owing to its internationally
accepted working procedures, nondiscriminatory and transparent
business operations, and excellent
performance standards.

11
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CPPA

Central Power Purchasing Agency

2.6 Objectives
1. Ensure verification of invoices from generators
(IPPs, GENCOs and WAPDA Hydel plants)
2. Execute settlement functions
(Billing to DISCOs and bulk consumers including
KESC under NEPRA determined mechanism)
3. Monitor functioning of different role players
(Generators, NTDC and Purchasers);
suggest changes in the SOPs

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CPPA

2.7 Core Responsibility


CPPA is primarily responsible
for purchasing power from all

Hydel

The
Natu rmal ral G
as

generators located throughout


Pakistan excluding Karachi
and selling it to all DISCOs
and bulk consumers including
KESC.

13

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Renewable

CPPA

CPPA
3. A Snapshot of
Major Functions

3.1 CPPAs Functions


1. Manage networking of CDPs for collection of energy data
2. Monitor functioning of meters installed at CDPs with grid

users (GENCOs, IPPs and DISCOs)


3. Undertake corrective measures for metering systems

errors
4. Establish Operating Committees, Metering Committees

and Interconnection Committees for all IPPs


5. Reconcile and process energy data received from Metering

Committees (NTDC, IPPs & DISCOs)


6. Monitor compliance with respective PPA

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CPPA

3.2 CPPAs Functions (Continued)


7. Setup teams to witness generators Commissioning Tests
and Annual Dependable Capacity Tests
8. Process and execute necessary amendments to PPAs
9. Co-ordinate with Planning Power for technical studies
10. Participate in NEPRA public hearings on multiple aspects
11. Co-ordinate with various NTDC departments for
arrangement of interconnection facilities
12. Development of different application software was
outsourced to Academia (UET: Al-Khawarzimi Institute of
Computer Sciences)

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Central Power Purchasing Agency (CPPA)

CPPA

IPPs Under 2002 Power Policy


# IPP Name

Location

Capacity (MW)

COD

Shiekhupura Road, Lhr.

156

17-03-09

2 Atlas Power Project

Morgah, Rawalpindi

214

18-12-09

3 Engro Power Project

Ghottki

217

27-03-10

4 Saif Power Generation Co.

Sahiwal

209

30-04-10

5 Orient Power Ltd

Kasur

209

24-05-10

6 Nishat Power Limited

Kasur

195

09-06-10

7 Nishat Chunian Power Ltd.

Kasur

195

21-07-10

Shiekhupura

209

05-10-10

Faisalabad

196

13-01-11

10 HUBCO Power

Narowal

214

22-04-11

11 Foundation Power Co.

Daharki

178

17-05-11

1 Attock Generation Ltd

8 Sapphire Elect. Co. Ltd


9 Liberty Power Tech

Total :

17

2193 MW

Central Power Purchasing Agency (CPPA)

CPPA

Upcoming IPPs Under 2002 P. Policy


# IPP Name
1

Halmore Power Generation

2 Star Power Generation


3 Uch-II Power Plant

Location

Capacity
(MW)

Expected
COD

Bhikki,
Sheikhpura

209

June, 2011

Daharki

126

Dec, 2013

Dera Murad
Jamali

375

Dec, 2013

Total :

18

710 MW

Central Power Purchasing Agency (CPPA)

CPPA

3.3 Renewable Perspective


1. Coordinate NEPRA for:
Issuance of Generation Licenses
Tariff determination
2. Maintain close liaison with AEDB on:
Capacity building on Renewable Energy (RE) technologies
Actualizing of CER for RE Projects
3. Development of Renewable Energy (RE) projects
4. Support DISCOs, Punjab Power Development Board and AJK
Power Development Board for developing of small hydro
power projects
5. Draft and negotiate PPAs with sponsors
6. Manage PPAs of completed projects

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CPPA

3.4 Status of Wind Power Projects


1. 21 IPPs with 1,054 MW of Wind Energy are on the way.
2. 7 IPPs have so far acquired Generation Licenses.
3. NEPRA approved tariff for 5 IPPs.
4. CPPA is negotiating standard draft EPA with several IPPs.
5. EPA was signed with FFCEL on 15th April 2011.

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Central Power Purchasing Agency (CPPA)

CPPA

3.5 NEPRA Determined Tariff - Wind Projects


Capacity
(MW)

Tariff
(US$ Cents
per kWh)

Anticipated
COD

IPP Name

Green Power Pvt. Ltd.

50.0

10.285

Jun. 2013

Dawood Power Ltd.

50.0

11.870

Aug. 2013

Zorlu Enerji Pakistan Ltd.

56.4

12.105

Oct. 2012

Arabian Sea Wind Energy

11.920

Oct. 2013

Fauji Fertilizer Company Ltd.

16.109

Sep. 2012

Total :

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49.5
49.5

255.4 MW

CPPA

CPPA

4. Some of Our
Business Processes

4.1 Flow of Revenue Cycle


1
2
3
4
5

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Verify bills from generators & compute payments


Evaluate price chargeable to DISCOs & bulk consumers
Bill to DISCOs, KESC and bulk consumers
Collection of funds against bills issued by CPPA
Monthly disbursal of funds to the generators

CPPA

4.2 IPPSs 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

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CPPA

4.3 GENCOs & WAPDA Hydel Invoicing


Verification of Energy Purchase Price Invoices (EPP)

Verification of Capacity Purchase Price Invoices (CPP)

Supplementary Invoices claimed by the generators

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Central Power Purchasing Agency (CPPA)

CPPA

4.4 Invoicing Process for DISCOs & IPPs


Calculation of Energy Transfer Rate
(ETR) & Capacity Transfer Price (CTR)
Sale of electricity invoices to DISCOs
and KESC
Billing to IPPs against energy purchased
through NTDC network
Monitoring for recovery of amount billed
to DISCOs and KESC

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Central Power Purchasing Agency (CPPA)

CPPA

4.5 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

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CPPA

CPPA

5. Roadmap to the Future

5.1 Objectives As Autonomous Entity


1. Maintain transparency
2. Ensure effective accountability
3. Exhibit non-discrimination among generators & customers
4. Achieve highest efficiency through corporate culture
5. Build industry standard capacity to manage business
6. Prepare and execute business plan
7. Mitigate cash shortfall risks
8. Monitor functioning of different role players
9. Develop formalized business standards and procedures

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CPPA

CPPA

Your questions would certainly


add value to
our approach, operations and
performance