Internship Report

Submitted by:
Muhammad Ahmed Masood
Intern at M & E
Table of Contents

Abstract.......................................................................................................................................................3
Introduction:................................................................................................................................................4
Learning/Involvement in the Activities:......................................................................................................5
Conclusion:.................................................................................................................................................8
 Abstract

This report discusses the experience of the author as an Intern in NEPRA. I spent four weeks at NEPRA
in the Monitoring and Enforcement department where I spent time understanding the distribution and
generation sectors and what role M & E plays in these sectors. Moreover, understanding and analyzing
different performance factors for a generation company was also new for me. Furthermore, role of
NEPRA in the power sector and how it regulates the power sector.

I would like to acknowledge HOD Monitoring and Enforcement Department Sir Imran Qazi for his kind
mentorship and guidance and Director Generations Sir Khawar and Deputy Director Sir Junaid who
guided me throughout this period. This experience of working in the top level organization will help me
in my career and I am very grateful to NEPRA for providing me this opportunity.
 Internship Report
Introduction:
Pakistan electricity sector is a developing market. For years, the matter of balancing the
country's supply against the demand for electricity had remained a largely unresolved matter.
The country faced significant challenges in revamping its network responsible for the supply
of electricity. Electricity generators were seeking parity in returns for both domestic and
foreign investors indicating it to be one of the key issues in overseeing a surge in electricity
generation when the country was facing growing shortages. Other problems included lack of
efficiency, rising demands for energy, and political instability. Provincial and federal
agencies, who are the largest consumers, often do not pay their bills. At one point electricity
generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country was
hit by its worst power crisis in 2007. Load Shedding and power blackouts had become severe
in Pakistan before 2016 hence production fell by 6000 Megawatts and massive blackouts
followed suit.
Economic Survey 2019-20 unfolds that Pakistan's installed capacity to generate electricity
has surged up to 37,402 MW by June 2020 which stood at 22,812 MW in June 2013,
showing the growth of 64 percent.
According to the Pakistan Economic Survey 2019–20, the installed electricity generation
capacity reached 37,402 MW in 2020. The maximum total demand coming from residential
and industrial estates stands at nearly 25,000 MW, whereas the transmission and distribution
capacity is stalled at approximately 22,000 MW. This leads to a deficit of about 3,000 MW
when the demand peaks. This additional 3,000 MW required cannot be transmitted even
though the peak demand of the country is well below its installed capacity of 37,402 MW.
Understanding about the power sector: (Role of NEPRA, Role of Transmission (NTDC) ,
Generation(GENCOs and IPPs) and Distribution Companies (DISCOs)):

NTDC: National Transmission and Dispatch Company (NTDC) links Power Generation
Units with Load Centers spread all over the country (including Karachi) and thus establishes
and governs one of the largest interconnected Networks. The Company is responsible for
evacuation of Power from the Hydroelectric Power Plants (mainly in the North), the Thermal
Units of Public (GENCOs) and Private Sectors (IPPs) (mainly in the South) to the Power
Distribution Companies through primary (EHV) Network.

WAPDA was unbundled in the year 2007 whereby the functions of its Power wing were
redefined as Hydel Power Generation and Operation & Maintenance (O&M) of power
houses.
AEDB: Only facilitates the IPPs.

About NEPRA: NEPRA has been created to introduce transparent and judicious economic
regulation, based on sound commercial principals, to the electric power sector of Pakistan.
 NEPRA reflects the country's resolve to enter the new era as a nation committed to free
enterprise and to meet its social objectives with the aim of improving the quality of life for its
people and to offer them opportunities for growth and development.

Duties as a Regulatory Authority

Approval of Generation Licenses: Specify procedures and standards for investment programes
by generation companies and persons licensed or registered under this Act. Specify and enforce
performance standards for generation companies and persons licensed or registered under this
Act. Specify accounting standards and establish a uniform system of account by generation
companies and persons licensed or registered under this Act. Specify fees including fees for grant
of licenses and renewal thereof. Review its order, decisions or determinations. Settle disputes
between licensees in accordance with the specified procedure.

Learning/Involvement in the Activities:

Licensing:
Hearing of Fuel Adjustment / Tariff Determination (CPPA-G vs. NEPRA)

IGCEP: Need of planning due to shortage of power generation and more demands of power.
Steps taken to provide least cost generation facilities in future on the basis of the output
generated by simulation of probabilistic models(Depending upon different factors).

NET-Metering: (Two way Electricity meters, generation licenses issued by NEPRA ,

Installation of solar facility) . Net Metering: ‘‘Net metering Pakistan is an electricity policy
for consumers, who own / plan to setup a Renewable Energy facility, which allows them to
produce electricity (using solar) for their own use and supply the excess produce to the
national grid setting-off units of electricity consumed during off-peak hours or at times when
the production from RE facility is not enough to meet the consumer load. The consumer will
either pay reduced utility bill or get paid for access energy exported to the grid. NEPRA, in
September 2015, issued its net-metering regulations that allow the DISCOs in Pakistan to
purchase excess units of electricity produced by the consumers, and net them off against the
units consumed from the grid. As per these regulations, any customer of the national grid
(having three-phase connection) can avail net-metering facility for small-scale (1kW to
1MW) Renewable Energy installations. Renewable Energy is a long-term power solution.
The Solar PV Technology gives access to affordable electricity supply during system life.
Residential and commercial customers can switch their electricity load to Renewable Energy
(RE) and can slash their power bills.’’

Basic Understanding about the Generation Licenses issued to IPPs.

Monitoring and Enforcement:

It has three segments:

1. Generation
2. Distribution
3. Transmission

In Generation, I did analysis of various power generation companies and did data entry in
excel and observed their performance factors:

1. GENCO-I: Jamshoro Power Company Limited

2. GENCO-II:
TPS-GUDDU:

GUDDU-747:
3. GENCO-III:
Faisalabad and Muzaffargarh:

CCPP, Nandipur:
In Distribution, I came across consumer service manual and some laws:

Understanding about the Section 38, 1997:

While understanding about the distribution sector, I came across that in case of any
discrepancy, they charge bills of there is defect in meter. For consumer, go to Electric
Inspector (5 in Punjab). For new connections, testing report issued by electric inspector. In
section 38, it empowers the electric inspector. All work related to terrify, bills is dealt by it. If
consumer appeals, an advisory board listens the appeal. According to the amendment in
section 38-3, now NEPRA listens the appeal.

M & E department checks:

1. Defect of meters
2. Slowness in meter
3. Shunt (remote control relay

PLD 2012 SC 371:

According to this, direct theft is evident then FIR is file against and case is listened in civil
court. Punishment can be up to from 6 months to 2 years in prison.

Consumer Service Manual:

CSM is applicable to all consumers served by distribution licensee. According to section 21

of regulation generation, transmission and distribution of electric power act, 1997 with rule 9
which shall be administered to ensure an effective and reliable supply of electric power.

Conclusion:
To conclude, my understanding about NEPRA is that it is a regulatory authority that regulates the
power sector of Pakistan. Generation, Transmission and Distribution are three areas of power sector.

Main roles of NEPRA include:

1. Issues Tarrif to companies. Tarrif is rate of electricity where 1 unit = 1 KWh

2. Issue of License
3. Performance Standards
Performance standards can be understood by taking an example of feeders that should not be
interrupted by more than 30 etc.