Central Power Purchasing Agency (CPPA-G) is a Company incorporated under the Companies Ordinance, 1984 and wholly owned by the Government of Pakistan (the “GOP”). Since June 2015, CPPA-G has assumed the business of National Transmission and Dispatch Company (the “NTDC”) pertaining to the market operations and presently functioning as the Market Operator in accordance with Rule-5 of the NEPRA Market Operator (Registration, Standards and Procedure) Rules, 2015 (the “Market Rules”).

The Company is currently performing eight major functions segregated into six core and two support functions. The core functions include (i) settlement, (ii) power procurement on behalf of DISCOs, (iii) finance, (iv) legal and corporate affairs, (v) strategy and market development, (vi) monitoring and coordination. The support functions include (vii) human resource management and (viii) information technology.

The CPPA-G being the Market Operator is facilitating the power market transition from the current single buyer to competitive market. While changing the market model, the overall strategy is to bring efficiency through competition in generation and retail, while transmission and distribution wire business remains regulated as they are natural monopolies. The objectives to evolve the market models are the following:

1. Search for efficiency, as the traditional model has no or insignificant incentives for reducing costs and making prudent investments
2. Facilitate the financing of the power sector, introducing dynamic and creditworthy players
3. Increased efficiency and appropriate financing ultimately should lead to lower tariffs and better service quality for end users