CPPA Important Facts

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

CPPA Existing Organizational Structure

Managing Director
Staff Officer
Technical
Chief Operating Officer/
General Manage.0r

Chief Engineer
Settlement

Chief Engineer Director General

Procurement
IT

Deputy G. M.
Finance

Manager Tech
(3)

Manager Tech
(2)

Manager IT
(2)

Manager
(4)

Manager HR&A
(4)

D.M (5)
A.M (5)

D.M (4)
A.M (4)

D.M (4)
A.M (4)

D.M (7)
A.M (13)

D.M (2)
A.M (2)

Central Power Purchasing Agency (CPPA)

Manager L&CA
(4)

CPPA

Vision
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.

CPPA

Mission
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 demandsupply contrast.

CPPA

Strategic Goal
CPPA to be acknowledged as a
trusted, professional and efficient
agency owing to its internationally
accepted working procedures, nondiscriminatory and transparent
business operations, and excellent
performance standards.

55

CPPA

Central Power Purchasing Agency

Objectives
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

CPPA

Core Responsibility
CPPA is primarily responsible
for purchasing power from all

Hydel

The
Natu rmal ral G
as

generators located throughout

Pakistan excluding Karachi
and selling it to all DISCOs
and bulk consumers including
KESC.

al Oil
rm ce
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Th rna
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Th uclea
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Th
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Renewable

CPPA

CPPAs Functions
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

CPPAs Functions (Continued)

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

IPPs Under 2002 Power Policy

# IPP Name

Location

Capacity (MW)

COD

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

Shiekhupura

209

05-10-10

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

Attock Generation Ltd

8 Sapphire Elect. Co. Ltd

9 Liberty Power Tech

Total :

10

2,402 MW

Central Power Purchasing Agency (CPPA)

CPPA

Upcoming IPPs Under 2002 P. Policy

# IPP Name
1 Star Power Generation
2 Uch-II Power Plant

Location

Capacity
(MW)

Expected
COD

Daharki

126

Dec 2013

Dera Murad
Jamali

375

Dec 2013

Total :

11

710 MW

Central Power Purchasing Agency (CPPA)

CPPA

Renewable Perspective
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 projects
4. Support DISCOs, Punjab Power Development Board and AJK
Power Development Board for developing of small hydro
power projects
5. Draft and negotiate EPAs with sponsors
6. Manage EPAs of completed projects

12

CPPA

Status of Wind Power Projects

1. 22 IPPs with 1,104 MW of Wind Energy are on the way.
2. 8 IPPs have so far acquired Generation Licenses.
3. NEPRA has approved tariff for 8 IPPs.
4. CPPA is negotiating standard draft EPA with several IPPs.
5. EPA was signed with FFCEL in April 2011.
6. EPA was signed with ZEPL in January 2012.

13

Central Power Purchasing Agency (CPPA)

CPPA

NEPRA Determined Tariff - Wind Projects

Capacity
(MW)

Tariff
(US$ C/kWh)

Anticipated
COD

Fauji Fertilizer Company

49.5

16.109

Jan 2012

Zorlu Enerji Pakistan

56.4

13.3456

Mar 2013

Foundation Wind Energy I

50

14.1164

Jun 2013

Foundation Wind Energy II

50

14.1164

Jun 2013

Three Gorges First Wind

Farm

49.5

13.9399

Jun 2013

Dawood Power Ltd.

50.0

11.870

Aug 2013

Arabian Sea Wind Energy

49.5

11.920

Oct 2013

Yunus Energy

49.5

17.3672

Oct 2012

IPP Name

14

CPPA

Upcoming Solar Power Projects

#

IPP Name

Capacity

Location

Anticipated COD

Tech Access

10 MW

Punjab

Under process at PPDB

China IW&EC

50 MW

Bahawalpur,
Punjab

Interconnection Study in
progress

DACC Power
Generation Co.

50 MW+
2,200 MW

Cholistan,
Punjab

LOI issued by AEDB for Ist

Phase

Roshan Power
(Pvt.) Limited

10 MW

Kasur, Punjab

LOI issued by PPDB

Sanjwal Solar
Power

1 MW

Sanjwal

Power Acquisition Request

in process

PEC

356 KW

Islamabad

Generation Licnese under

process by NEPRA

15

CPPA

Flow of Revenue Cycle

1
2
3
4
5

16

Verify bills from generators & compute payments

Evaluate price chargeable to DISCOs & bulk consumers
Bill to DISCOs, KESC and bulk consumers
Collection of funds against bills issued by CPPA
Monthly disbursal of funds to the generators

CPPA

IPPSs 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

17

CPPA

GENCOs & WAPDA Hydel Invoicing

Verification of Energy Purchase Price Invoices (EPP)

Verification of Capacity Purchase Price Invoices (CPP)

Supplementary Invoices claimed by the generators

18

Central Power Purchasing Agency (CPPA)

CPPA

Invoicing Process for DISCOs & IPPs

Calculation of Energy Transfer Rate
(ETR) & Capacity Transfer Price (CTR)
Invoices to DISCOs
and KESC for sale of electricity
Billing to IPPs against energy purchased
through NTDC network
Monitoring for recovery of amount billed
to DISCOs and KESC

19

Central Power Purchasing Agency (CPPA)

CPPA

Reconciliation & Disputes Resolution

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

20

CPPA

Objectives As Autonomous Entity

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

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CPPA