Presentation of NTDC Business Plan - Planning Commission

To contribute towards thedevelopmentof prosperous Pakistan by managingsmooth and economical Transmissionand Despatch System with professionalexcellence and zeal.

National Transmission and DespatchCompany Ltd. aims to be the best electricityTransmission Company maintaining highlyefficient standards, uncompromising onTransmission System reliability and safety andcommitted to become the best serviceprovider to the power producers, distributioncompanies and bulk power consumersconnected to its Network.

NTDC was granted Transmission License No.TL/01//2002on 31st December 2002 by NEPRA to engage in theexclusive transmission business for a term of thirty (30)years, pursuant to Section 17 of the Regulation ofGeneration, Transmission and Distribution of ElectricPower Act, 1997. Under the regime set out in the License,the Company is entrusted to act as:-• System Operator (SO)• Transmission Network Operator (TNO)• Central Power Purchasing Agency (CPPA)• Contract Registrar and Power ExchangeAdministrator (CRPEA)

NTDC was incorporated on 6th November, 1998and commenced commercial operation on March I, 1999.It was organized to take over all the properties, rightsand assets, obligations and liabilities of 220 kV and500kV Grid Stations and Transmission Lines/Networkowned by WAPDA. Presently, NTDC operates andmaintains the following Network System:• 27 Nos. 220 kV Grid Stations, 7,359 km of 220 kV lines• 12 Nos. 500 kV Grid Stations, 5,077 km of 500 kV lines39 Nos. 12,436 Km

Addition of Transmission lines &transformation capacity of NTDC system foreconomical, reliable & efficient operation ofevacuation of power from power plants &delivery to the Distribution Companies(DISCOs) and bulk power consumers at theirload centres.

The Grid System Operation (GSO) is a functional tier of TNO,maintaining 39 Grid Stations of 500 kV and 220 kV level and12,436 Km long transmission lines linking various powerstations ti to load centers throughh following four 4 (GSO)regions:• Lahore ,• Islamabad,• Multan and• HyderabadThe GSO system is used for transportation of electricity fromgeneration units to DISCOs and Bulk Power Consumers (BPCs).This system spreading all over the country is beingmaintained properly and efficiently. The GSO regions areavailing technical services from Technical Services Group(TSG) and System Protection (SP) based in Lahore.

ROUSCH MU ULTAN SAHIWAL500kVGATTINTDC 500kV & 220kV SYSTEM (NORTHERN)500kVLAHORE500kVGAKHAR500kVREWAT500kVGHAZI BROTHA1450 MW500kVTARBELA3478 MW500kVPESHAWAR3X600MVA3X450MVA3X450MVA2X450MVASAMU NDRIROA AD3X450MVA220kVNISHATABAD3X600MVA220kVRAVI220kV NKLP220kVBUND ROAD220kVK.S.K220kVSIALKOT220kV 220kVGAKHAR MANGLA1000 MW220kVISPR220kVBURHAN220kVMARDAN3X160MVA 3X160MVA 3X160MVASAHIWAL220kVJWR FBD4X63.5 MVA1X100 MVA3X160MVA4X160MVA4X160MVA3X160MVA300 MW3X160MVA220kVCHASHMA220kVDAUD KHEL2X160MVA3X160MVASAHIW WAL2X160MVA220kVSARFRAZNAGAR2X160MVA220kVBANNU3X160MVA2X160MVA1X315 MVA3X160MVA3X160MVA2X160MVA2X160MVA

•Strict follow up of maintenance schedule as per system operatingprocedures.•Use of updated protection & SCADA System with suitable back-up.• Measures to control the reactive power deficit with theinstallation of Flexible AC Transmission System (FACTS) devicese.g. SVC etc.•Adherence of N-1 contingency criteria while allowing shut downsespecially on 500 kV Auto Transformers and Transmission Lines.•Increase in frequency of cleaning/ washing of grid stationsequipment and disc insulators of transmission lines in thepolluted areas.•Providing of additional cooling arrangements to increase theloading capacity of power transformers.

•Regular replacement of defective/broken disc insulators,towers and repairing of broken strands of conductor.•Increase in patrolling of transmission lines in the troubledareas to pin points the defects for timely rectification.•Maximum shutdown arrangements in low load flow seasonfor preventive maintenance of the system.•Provision of sufficient stock of material/spares forreplacement.•Detail Checking of protection system settings for properoperation.• Frequent approach to administrative set-up in the troubledFrequent approach to administrative set up in the troubledareas for developing liaison against miscreants.

The Code of Corporate Governance as stipulated by SECP, and so far as itapplies to NTDC, is being complied with.• NTDC, normally conduct Meetings of BOD as per Company Ordinance.• Significant issues placed for decision by the BOD include:•Annual PSDP, and Operational budgets;•Annual Financial Statement of NTDC and Management letters issued bythe commercial auditors;•All cases relating to acceptance of Tender for execution of Works,Purchase of store material beyond the financial powers of CEO NTDC.•Write off of amounts due to failure in recoveries on account of tradedebts,•Write-off of losses beyond the competency of the CEO;•Status and implications of any law suit or proceedings of materialnature, filed by oragainst the company;• The CFO and the Company Secretary attend BOD meetings• NTDC has established audit committee as required in the code of• NTDC has established audit committee as required in the code ofcorporate governance.

• STRENGTHNTDC is a major player in the National Power System and solelicensee of transmission of electricity from power producers toDistribution Companies.• WEAKNESSESExisting infrastructure t and facilities are inadequateto cater to therequirement of evacuation of power from future hydel and coalresources in the country.• OPPORTUNITIESCompany is open to take long term finances from local as well as frominternational financial institutions to upgrade its system.• THREATSThe fluctuation in demand (MW) due to seasonal changes and powershortages may reduce its recovery of revenue requirements.

Objectives / Targets Based on SWOT Analysis• Corporate ObjectiveEconomical, reliable & efficient operation of system on profitable basis.• Financial ObjectiveAll corporate and financial requirements are fully complied with rules &regulations• Technical Operations ObjectiveTo strengthen its transmission system for providing reliable electricpower from generation plants to distribution companies/Bulk PowerConsumers.• Commercial Operation ObjectiveTo ensure Commercial viability of the company by facilitating thepresent & future demand of electricity, its growth and tariff forecast.• Manpower Planning ObjectiveTo keep the best human resource and provide training to cope with thefuture demand and challenges given the future Hydro Electric projects inthe North and Thermal and Coal projects in the South of the country.• Procurement Planning ObjectiveNTDC follows quality procurement procedures and maintain adequateinventory levels both for existing and running projects at the lowestpossible cost.

• Operational & Maintenance Cost of the system• Debt Servicing for NTDC System expansion• Return on Equity & plough back to enhance theNTDC System

The results projected by NTDC have the followingcharacteristics:•The targetst to be achieved are based on realisticassumptions for future projections.•The inflationary impact has been taken into accountwhile preparing these projections.•Future growth of 5 % in peak demand is also included inFuture growth of 5 % in peak demand is also included inaction plan of the company.

NEPRA has started disallowing T&T losses beyond 2.5% from Jan-2010.We have included this matter in the tariff petition as a separatecomponent in Line with the last tariff determination

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