CEO Message
Last year was particularly challenging for the country, with local economic downturns and global geopolitical events significantly impacting our growth trajectory. The energy sector, especially the power segment, faced severe trials due to soaring imported fuel costs, fiscal and external constraints, high inflation, and the devaluation of the Pak Rupee. Despite these challenges, CPPA-G effectively managed the financial aspects of the power sector, achieving remarkable results during the last fiscal year.
Our efforts have been consistent and fruitful, aligning with our vision and core principles. In 2023, as the global energy industry continues to transform, CPPA-G led significant initiatives. We operationalized local coal-based power plants and facilitated spot buying of coal from Afghanistan in Pak Rupees, which resulted in considerable foreign exchange savings. CPPA-G was also pivotal in negotiating tariff discounts with power plants and capping gas prices, significantly reducing Circular Debt and ensuring future savings. Despite short collections by the DISCOs, we managed to disburse funds efficiently to Power Producers without compromising their operations.
Further advancing market reforms, CPPA-G has spearheaded the move towards a competitive power market in Pakistan. After being granted the Market Operator (MO) license and the Market Commercial Code (MCC) by NEPRA in 2022, we completed all 24 test run actions required, culminating in the operationalization of our in-house developed Market Management System (MMS). This system automates market transactions and has enabled us to issue Preliminary and Final Settlement Statements to market participants monthly.
CPPA-G has committed to professional development and innovation, collaborating globally and locally to enhance the power sector's future. This year, we have continued investing in specialized training for sector professionals, conducting sessions mandated by NEPRA, and organizing consultations to develop consensus on various aspects of the test run among power sector entities.
In alignment with our mission to enhance the power sector, CPPA-G has actively contributed to developing the National Electricity Plan (NE-Plan), which supports affordable energy, energy security, and sustainability. We have supported the Power Division in managing Circular Debt, updating the Circular Debt Management Plan (CDMP), and designing technological and commercial packages for the solarization of tube wells across Pakistan, alongside power sector subsidy reforms.
CPPA-G has also focused on creating a robust, efficient, and cyber-secure workplace through digitalization. Major advancements include implementing Enterprise Resource Planning (ERP), Learning Management System (LMS), and Information Management System (IMS) to streamline operations and enhance manpower through various in-house and international workshops.
Our core financial performance in 2022-23 included the financial settlement of energy transactions worth Rs. 2.5 trillion on behalf of DISCOs. We also negotiated and signed operating procedures with 15 power projects and successfully integrated four new power plants with a total capacity of 3,243 MW into the National Grid.
I want to express my gratitude for the dedication and perseverance of everyone at CPPA-G. Your commitment has been crucial in overcoming challenges and achieving significant milestones. Together, we are set to seize opportunities and drive transformative progress that will mark CPPA-G’s role in the future of Pakistan’s energy sector.
