Pakistan has taken a major step toward establishing a competitive electricity market after the National Electric Power Regulatory Authority (NEPRA) determined the Use of System Charge (UoSC), according to the Ministry of Energy.
Federal Minister for Energy Sardar Awais Ahmad Khan Leghari welcomed the decision, describing it as an important milestone for the country’s power sector.
The minister said the determination of the Use of System Charge was the final major regulatory step required for the Competitive Trading Bilateral Contract Market (CTBCM) auction, clearing the way for the auction process to proceed.
Under the new competitive electricity market, eligible industrial consumers will be able to purchase electricity directly from suppliers of their choice instead of relying solely on the existing single-buyer model.
Leghari said industrial consumers will be able to enter into bilateral agreements with power suppliers, increasing competition within the electricity market.
The government expects greater competition among electricity suppliers to improve power generation efficiency and provide consumers with more competitive prices.
According to the minister, the new market structure could also improve the utilization of existing power plants and reduce inefficiencies throughout the electricity supply chain.
The competitive framework is also expected to encourage investment and greater adoption of renewable energy and battery storage, while enabling Pakistan to make better use of cheaper domestic energy resources.
The government further expects the system to reduce reliance on expensive imported fuels by promoting more efficient and cost-effective electricity generation.
Leghari said NEPRA’s decision establishes the regulatory framework required for direct electricity access and represents a major structural change in Pakistan’s power market.
