Private Power and Infrastructure Board ("PPIB")
National Electric Power Regulatory Authority ("NEPRA")
The PPIB is a state-owned regulatory agency which was formed in 1994 with the objective of improving investment incentives and facilitating private investors in Pakistan's power sector. The board's purpose is to serve as a central facility to investors in the private power sector, acting on behalf of the GoP, providing advice and guidance towards the implementation of power plant projects. The main task of the agency is to negotiate the implementation agreement and provide support in negotiating fuel supply agreements and power purchase agreements. The PPIB also provides guarantees to private investors for the performance of government entities such as NTDC, monitors litigation and international arbitration for and on behalf of the GoP. Furthermore, the PPIB assists the regulatory authority in determining and approving tariffs for new private power projects.
Alternative Energy Development Board ("AEDB")
NEPRA is an autonomous regulatory agency created under the NEPRA Act 1997, with the objective of introducing transparent and judicious economic regulation in the Pakistani power sector. The authority was created to ensure fair competition and consumer, producer and seller competition.
NEPRA's most important regulatory functions include the following:
- Issuance of licenses for power production, transmission and distribution (including the stipulation of licensing fees).
- Determination of electricity tariff rates, both with regard to remuneration of producers (NTDC purchase price) and consumer pricing.
Approve tariffs negotiated in connection with bilateral agreements between individual power producers and the NTDC, distribution companies and major customer.
- Define the licensing requirements and impose fines for non-compliance with the relevant regulations.
The Government of Pakistan guarantees the performance obligation of its entity, the power purchaser NTDC via the PPA for between 15 and 30 years.
AEDB was established to act as a central agency for development, promotion and facilitation of renewable energy technologies such as wind, solar, etc.