The government is looking to empower and, thereby, strengthen energy regulators, the Oil and Gas Regulatory Authority (OGRA) and National Electric Power Regulatory Authority (NEPRA). This would help bring domestic energy sector’s performance at par with international standards in the next fiscal year 2011-12. An official source said that efficiency lags, pointed out by international financial institutions (IFIs), had driven this decision. He felt that strengthening regulatory functions was imperative to improve supply chains and to enforce proper competition. Meanwhile, the International Monetary Fund (IMF) has also demanded grant of a complete autonomy to NEPRA on power tariff for revival of a suspended standby arrangement.
Currently, implementation of NEPRA determined tariff is notified by the government. IFIs have suggested formation of a Coal Regulatory Authority (CRA) to expedite exploitation of huge coal reserves for power generation, he said. He maintained that the slow tariff determination process was a major hindrance in setting up coal based power projects. Coal, currently, has a seven percent share in the primary energy mix. The government, he said, plans to fast track an integrated energy policy to provide proper direction to the energy sector, as different policy documents for different fuels existed. The integrated energy policy will ensure uniformity across various fuels and will provide a level playing field for public and the private sector.
By addressing the issue of a lack in proper energy database and information flow across energy sector entities, he said, the government plans to form an Energy Information Center at the Planning Commission in the next fiscal year. The government also plans to draft legislation on energy efficiency (EE) and enforcing EE standard. This will help overcome the wastage of natural gas in geysers and stoves. According to assessments of international agencies, EE measures could help energy savings of 11.16 million tonnes oil equivalent (MTOE) or 17 percent of primary energy supply, sufficient to provide over 7,000 MW of thermal power.
