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 its business through wheeling charges.
CPPA Important Facts
CPPA1
Managing Director
Chief Engineer Settlement
Central Power Purchasing Agency (CPPA) CPPA2
CPPA Existing Organizational Structure
Staff Officer Technical
Director GeneralIT
Chief Operating Officer/General Manage.0r
D.M (5)A.M (5)
Manager Tech(3)
Manager Tech(2)
D.M (4)A.M (4)
Manager IT(2)
Manager(4)
D.M (4)A.M (4)
D.M (7)A.M (13)
D.M (2)A.M (2)
Manager L&CA(4)
Chief Engineer Procurement
Deputy G. M.Finance
Manager HR&A(4)
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 as well as utility professionals.
Vision
3 CPPA
We undertake to procure each
unit of electricity produced from
different sources and to sell it to
DISCOs and bulk consumers to
offset the prevailing demand-
supply contrast.
Mission
4 CPPA
Strategic Goal
Central Power Purchasing Agency5
CPPA to be acknowledged as a
trusted, professional and efficient
agency owing to its internationally
accepted working procedures, non-
discriminatory and transparent
business operations, and excellent
performance standards.
5 CPPA
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
4. Enter into Energy Purchase Agreements with sponsors of RE projects
Objectives
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CPPA is primarily responsible for purchasing power from all generators located throughout Pakistan excluding Karachi and selling it to all DISCOs and bulk consumers including KESC.
Core Responsibility
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Hydel
Therm
al –
Furnace
Oil
RenewableThermal -
Nuclear
Thermal - Natural Gas
Thermal - Coal
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/EPA
CPPA’s Functions
8 CPPA
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
Central Power Purchasing Agency (CPPA)
CPPA’s Functions (Continued)
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Central Power Purchasing Agency (CPPA)
# IPP Name Location Capacity (MW) COD1 Attock Generation Ltd 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
8 Sapphire Elect. Co. Ltd Shiekhupura 209 05-10-10
9 Liberty Power Tech Faisalabad 196 13-01-11
10 HUBCO Power Narowal 214 22-04-11
11 Foundation Power Co. Daharki 178 17-05-11
12 Halmore Power Gen. Bhikki, Sheikhpura 209 25-06-11
Total : 2,402 MW
IPPs Under 2002 Power Policy
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Central Power Purchasing Agency (CPPA)
# IPP Name Location Capacity(MW)
Expected COD
1 Star Power Generation Daharki 126 Dec 2013
2 Uch-II Power Plant Dera Murad Jamali 375 Dec 2013
Total : 710 MW
Upcoming IPPs Under 2002 P. Policy
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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 RE projects4. Support DISCOs, Punjab Power Development Board and AJK
Power Development Board for developing of small hydro power projects
5. Draft and negotiate EPAs with sponsors6. Manage EPAs of completed projects
Renewable Perspective
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6. EPA was signed with ZEPL in January 2012.
Central Power Purchasing Agency (CPPA)
Status of Wind Power Projects
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5. EPA was signed with FFCEL in April 2011.
4. CPPA is negotiating standard draft EPA with several IPPs.
3. NEPRA has approved tariff for 8 IPPs.
2. 8 IPPs have so far acquired Generation Licenses.
1. 22 IPPs with 1,104 MW of Wind Energy are on the way.
# IPP Name Capacity(MW)
Tariff(US$ C/kWh)
Anticipated COD
1 Fauji Fertilizer Company 49.5 16.109 Jan 2012
2 Zorlu Enerji Pakistan 56.4 13.3456 Mar 2013
3 Foundation Wind Energy – I 50 14.1164 Jun 2013
4 Foundation Wind Energy – II 50 14.1164 Jun 2013
5 Three Gorges First Wind Farm 49.5 13.9399 Jun 2013
6 Dawood Power Ltd. 50.0 11.870 Aug 2013
7 Arabian Sea Wind Energy 49.5 11.920 Oct 2013
8 Yunus Energy 49.5 17.3672 Oct 2012
NEPRA Determined Tariff - Wind Projects
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# IPP Name Capacity Location Anticipated COD
1 Tech Access 10 MW Punjab Under process at PPDB
2 China IW&EC 50 MWBahawalpur,
PunjabInterconnection Study in
progress
3DACC Power Generation Co.
50 MW+ 2,200 MW
Cholistan, Punjab
LOI issued by AEDB for Ist Phase
4Roshan Power (Pvt.) Limited
10 MW Kasur, Punjab LOI issued by PPDB
5Sanjwal Solar Power
1 MW SanjwalPower Acquisition Request
in process
6 PEC 356 KW IslamabadGeneration Licnese under
process by NEPRA
Upcoming Solar Power Projects
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Flow of Revenue Cycle
16 CPPA
1 Verify bills from generators & compute payments
2 Evaluate price chargeable to DISCOs & bulk consumers
3 Bill to DISCOs, KESC and bulk consumers
4 Collection of funds against bills issued by CPPA
5 Monthly disbursal of funds to the generators
CPPA
IPPS’s 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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Central Power Purchasing Agency (CPPA)
GENCOs & WAPDA Hydel Invoicing
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Verification of Energy Purchase Price Invoices (EPP)
Verification of Capacity Purchase Price Invoices (CPP)
Supplementary Invoices claimed by the generators
Central Power Purchasing Agency (CPPA)
Invoicing Process for DISCOs & IPPs
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Invoices to DISCOs and KESC for sale of electricity
Billing to IPPs against energy purchased through NTDC network
Calculation of Energy Transfer Rate (ETR) & Capacity Transfer Price (CTR)
Monitoring for recovery of amount billed to DISCOs and KESC
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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Reconciliation & Disputes Resolution
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
Objectives As Autonomous Entity
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