Web Desk: Government has moved closer to introducing a competitive electricity market after the National Electric Power Regulatory Authority (NEPRA) approved the Use of System Charge, the Energy Ministry said.
Federal Energy Minister Sardar Awais Ahmad Khan Leghari described the decision as a significant development for the country’s power sector, saying it removes the last major regulatory obstacle to the planned auction under the Competitive Trading Bilateral Contract Market (CTBCM).
The decision is expected to allow the government to proceed with the next stage of the market-opening process.
Under the proposed system, eligible industrial consumers will be able to purchase electricity directly from suppliers instead of depending solely on the existing single-buyer arrangement.
In addition, consumers will be able to negotiate bilateral power contracts with suppliers. The government expects this shift to increase competition and give large electricity users greater flexibility in securing power.
Leghari said the new framework would create a more competitive environment among electricity providers and could ultimately lead to more efficient power generation and improved pricing.
Meanwhile, the government expects the competitive market to encourage more efficient use of Pakistan’s existing power-generation capacity.
The policy could also promote renewable energy projects and battery-storage systems by allowing consumers and suppliers greater flexibility in how electricity is sourced and traded.
Furthermore, officials expect the system to encourage greater use of lower-cost domestic energy resources. By improving the efficiency of electricity generation and procurement, the government hopes to reduce reliance on costly imported fuels.
Leghari said NEPRA’s determination establishes the regulatory foundation required to provide eligible consumers with direct access to electricity suppliers.
He described the move as a major structural change that could reshape Pakistan’s power market by replacing a predominantly centralised purchasing model with a more competitive trading system.
The government now expects the CTBCM auction process to advance following the regulatory decision, potentially setting the stage for greater competition in electricity procurement and a more flexible power market.
Read more: Citizens can now renew e-passports at all NADRA centres
