Pakistan To Import Additional 100MW Electricity From Iran

The National Electric Power Regulatory Authority has approved a tariff framework for the import of 104 MW of electricity and an additional 100 MW supply from Iran’s state-owned power company TAVANIR, while raising serious concerns over procedural violations and weak long-term planning by Pakistani authorities.

The decision followed an application submitted by the Central Power Purchasing Agency Guarantee Limited after the Economic Coordination Committee approved the extension and expansion of the cross-border electricity supply arrangement in August 2023.

CPPA G had requested approval for extending the tariff of the existing 104 MW supply and securing another 100 MW through amendments to the long-standing power purchase agreement signed with Iran.

The agreement between Pakistan and Iran was originally signed in 2002 and has since undergone several revisions. The latest amendments, identified as Amendments 7, 8, and 9, revise tariff mechanisms, payment arrangements, and technical transmission matters.

According to Nepra, Amendment 7 extended tariff terms until December 31, 2024, with payment settlements required within 45 days. Amendment 8 allowed for an additional 100 MW supply through the Polan Gabd transmission line and required infrastructure development on both sides of the border.

The newly proposed Amendment 9 introduces a revised tariff mechanism linked to global oil prices. Under the updated formula, electricity pricing includes a fixed component along with a variable component tied to average monthly OPEC oil prices. The delivered electricity tariff is expected to remain within a range of 12.40 cents per kilowatt hour.

Despite approving the amendments, Nepra strongly criticized CPPA G for repeatedly submitting agreements after their execution instead of obtaining prior regulatory approval as required under the Electric Power Procurement Regulations 2022.

The authority noted that the tariff extension request was submitted in September 2023, even though it covered a period beginning in January 2022. Nepra said earlier instructions regarding timely submissions had been ignored, reflecting broader procedural weaknesses within the system.

The regulator warned that future delays and post facto approvals could lead to serious regulatory consequences. Nepra also acknowledged that there is currently no immediate alternative to imported electricity for Balochistan’s Makran region, which continues to rely heavily on electricity supplies from Iran.