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2. Energy Regulations-An Introduction . Consumers and Energy Sector Regulation Past: Public Sector Monopolies like WAPDA, KESC, SNGPL, and SSGCLLegal and Infrastructural Reforms in Power Sector during 1990sInclusion of Independent Power Producers (IPPs)Unbundling of big state-owned monopolies. 3
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1. 1 Energy Regulations in Pakistan: Recent Developments“Energy: Sustainable Access for All” World Consumer Rights Day-March 2006 Muhammad Aftab Alam
Consumer Rights Commission of Pakistan
2. 2 Energy Regulations-An Introduction Consumers and Energy Sector Regulation
Past: Public Sector Monopolies like WAPDA, KESC, SNGPL, and SSGCL
Legal and Infrastructural Reforms in Power Sector during 1990s
Inclusion of Independent Power Producers (IPPs)
Unbundling of big state-owned monopolies
3. 3 Energy Regulations-New Regime National Electric Power Regulatory Authority (NEPRA) 1997
Natural Gas Regulatory Authority (NGRA), 2001
Oil and Gas Regulatory Authority (OGRA), 2002
De-regulation of Petroleum Prices
4. 4 NEPRA Mission Statement
…ensures the provision of safe, reliable, efficient and affordable electric power to the electricity consumers of Pakistan…
Section 7 (6) of the NEPRA Act, 1997
…the Authority shall, as far as practicable, protect the interests of consumers …
5. 5 OGRA Mission Statement
…Protect the Public interest while respecting Individual Rights by ensuring Effective, Efficient and Equitable Regulatory Environment.
Section 6 (2Q) of OGRA Ordinance, 2002
…Protect the Public interest while respecting Individual Rights by ensuring Effective, Efficient and Equitable Regulatory Environment.
6. 6 Functions of Regulators Licensing
Tariff Determination
Performance Standards of Utilities
Complaints against the Utilities
Public Hearing
Transparency and Openness
7. 7 Issues in Regulations Autonomous and Independent Regulators
Internal Issues: Lack of ownership by the sector
External Issues: Pressure from the investors for weak regulations
Government Interventions
Policy Guidelines or Policy Directives
8. 8 Policy Guidelines for Regulators Guidelines of Federal Government: NEPRA
Section 7: Powers and functions of the Authority
(6) In performing its functions under this Act, the Authority shall, as far as practicable, protect the interests of consumers and companies providing electric power services in accordance with guidelines, not inconsistent with the provisions of this Act, laid down by the Federal Government.
9. 9 Policy Guidelines for Regulators (Contd.) Guidelines of Federal Government: OGRA
Section 21: Power of Federal Government to Issue Policy Guidelines
The Federal Government may issue policy guidelines on the matters of policy not inconsistent with the provision of this Ordinance
10. 10 Recent Developments: NEPRA New IPPs Regime: 47 new power generation companies
Guidelines for Determination of Tariff for IPPs (November 2005, Ministry of Water and Power)
1.2 (a) NEPRA should now determine an up-front tariff [for IIPs without any public consultation]
Proposed NEPRA Amendments without Public Consultation-proposed draft not made public
11. 11 Recent Developments: OGRA Amendments in OGRA Ordinance [no public consultation]
Recent Cabinet Decision on Determination of Petroleum Prices
Issues
Preparation of Regulations/Rules to determine the Petroleum Prices [after consulting all stakeholders]
Public representation/participation in prices determination
Transparency and openness
12. 12
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