ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has accused DISCOs of not sharing accurate and reliable forecast data with the NPCC( SO), which is impacting its Security Constrained Economic Dispatch (SCED) mechanism.
These accusations have been hurled in a letter to Chief Executive Officers (CEOs) of ten DISCOs which is written in continuation of previous seven letters, whereby DISCOs have been directed to ensure the establishment of a fully functional and adequately staffed and resourced MIRAD for the effective implementation and operationalization of the Competitive Trading Bilateral Contract Market (CTBCM).
As per the terms and conditions of licence, it is mandatory for each Supplier of Lost Resort ( SoLR) to establish an independent and fully operational MIRAD. The MIRAD must be equipped with dedicated resources for planning, contract management, legal, and regulatory affairs. Therefore, it is imperative that each licencee ensures full compliance with its licenced obligations.
The Regulator says that given the forthcoming Commercial Market Operation Date (CMOD) of the CTBCM, it is more important than ever to ensure the operational readiness of the MIRAD which is vital for effectively managing market complexities and maintaining competitive and non-discriminatory open access to network by DISCOs in their roles, as market participants as SoLR and service providers as Distribution Network Operator (DNO) respectively.
NEPRA is of the view that it is important to highlight that the NEPRA Licencing (Electric Power Supplier) Regulations, 2022, NEPRA (Electric Power Procurement) Regulations, 2022, Grid Code, Distribution Code, Market Commercial Code, Suppliers and distribution Licences and determination of the Authority in the matter of approval of Combined Power Acquisition Programme (PAP) of DISCOs, and other applicable documents obligate DISCOs to perform multiple functions including preparation of annual load forecast, provision of operational load forecast to the System Operator (SO), network investment and power acquisitions plans, tariff petitions and contribute to integrated system planning for optimal network expansion under Transmission System Expansion Plan (TSEP) and least cost electric power procurement through Indicative Generation Capacity Expansion Plan (IGCEP), PAP and subsequent monitoring of the said approved relevant plans for the effective implementation.
The MIRAD has pivotal role in preparing, coordinating and overseeing the integrated system planning and procurement process including processing for the approval of procurement, establishing timelines for the start and completion of the procurement and bilateral contracts.
According to the power sector Regulator, DISCOs under Operation Sub-code (OC 2) of the Grid Code 2023 and other applicable documents are obligated for provision of data by grid users to the SO for all operational planning horizons by the specified timelines and in the requisite format, enabling the SO to take into account it for development of reliable and accurate operational demand forecasts for efficient economic dispatch and unit commitment.
However, it is noted that DISCOs have not been sharing accurate and reliable forecast data with the SO, which is impacting the Security Constrained Economic Dispatch (SCED) conducted by the SO.
NEPRA has directed DISCOs again to develop robust process and submit comprehensive operational demand forecasts methodology covering the pre-operational, operational, control, and post-control phases to the SO. These forecasts must accurately account for both active and reactive power demand, taking into consideration factors such as historical data, weather conditions, scheduled events, and embedded generation and MW profiles of the amount and duration of anticipated demand management which may result in a demand change of 10 MW or more on hourly and connection point basis.
To ensure the quality and reliability of these forecasts, DISCOs have been directed to: (i) improve the precision of data with regards to operational load forecasts submitted to the SO by utilizing advanced methodologies and incorporating all relevant factors and meet the performance requirements for demand forecasts as provided in Table OC1 of OC 2.8.2 of the Grid Code ; (ii) provide the complete forecasting methodology to the SO as per the formats, with a copy shared with the Authority, to facilitate transparency and oversight; and (iii). MIRAD departments must actively coordinate with relevant DISCO departments to ensure the timely and accurate submission of short-term load forecasts to the SO for reliable and efficient operations.
According to Director Registrar Officer, Masroor Khan, NEPRA has observed that despite standing directions from the Authority to ensure complete staffing of the MIRAD as per approved structure, many of the critical posts are either vacant, on dual charge or filled through temporary transfer and the staff is engaged in other day-to-day matters rather than performing their assigned MIRAD functions.The executive management of Licencees including CEOs have again been directed to oversee the operationalization of the MIRAD as per the approved structure and provision of the operational load forecast to the SO.
DISCOs have also been warned that any lapse or non- compliance may result in regulatory proceedings against the delinquents, in accordance with the Act, rules and regulations. The CEOs are further directed to provide monthly progress update (before fifteen of the each month) on the MIRAD staffing and activities and submit current strength of staff and tasked being performed by them.
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