The National Electric Power Regulatory Authority (Nepra) has notified uniform use-of-system charges (UoSC) of Rs6.23 to Rs19.62 per unit for bulk power consumers (BPCs) participating in the competitive electricity market. The rates apply to all distribution companies, including K-Electric.
Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers taking part in the upcoming 400MW auction will pay these charges to transport electricity from suppliers through the national grid.
The UoSC covers transmission and distribution charges, a fixed grid charge and cross-subsidy. It will be paid in addition to the supply price, including generation cost, agreed between the private supplier and the BPC.
B-3 industrial consumers will pay Rs6.23 per unit, while B-4 industrial consumers will pay Rs9.09. C-3 and C-2 single-point distribution consumers will be charged Rs14.95 to Rs19.62 per unit. A-2 and A-3 general supply consumers will pay Rs19.14, and agricultural consumers Rs6.72.
BPCs that do not participate in the competitive wheeling auction will face significantly higher rates of Rs19.17 to Rs32.56 per unit. B-3 and B-4 consumers in this category will pay Rs19.17 and Rs25.45, respectively, while C-2 and C-3 consumers will pay Rs31.30 and Rs32.56.
A-2 and A-3 consumers will be charged Rs32.08, and agricultural consumers Rs19.66. A fixed grid charge of Rs1 per kilowatt per month, based on sanctioned load, applies to both categories. There are currently a little over 3,000 BPCs in the country.
The commercial market operation date for the CTBCM was declared as Jan 22, 2026. The first auction, originally scheduled for June, was delayed because the UoSC had not been determined and notified. The notification is intended to clear the way for the formal launch of the competitive wholesale electricity market.
Electricity Tariff Comparison
| Consumer Category | With Auction | Without Auction | Savings |
|---|---|---|---|
| B-3 — Industrial | 6.23 | 19.17 | 12.94 |
| B-4 — Industrial | 9.09 | 25.45 | 16.36 |
| C-2 / C-3 — Single-Point Distribution | 14.95–19.62 | 31.30 / 32.56 | — |
| A-2 / A-3 — General Supply | 19.14 | 32.08 | 12.94 |
| Agricultural Consumers | 6.72 | 19.66 | 12.94 |
The Independent System Operation (Ismo), a new power division entity, is expected to auction 400MW in the first phase within the next couple of months. The government has allocated a total of 800MW for auction in two phases. Ismo is also expected to announce the auction calendar and detailed procedure shortly.
Nepra forwarded its UoSC determination to the government for uniform application after considering the views of the power division, Ismo, K-Electric and BPCs. The review covered the mechanism for calculating and settling the charges, including inter-Disco differentials, cross-subsidies, and transmission and distribution losses.
Under government directives, the impact of inter-Disco differentials arising from uniform rates will not be borne exclusively by wheeling consumers. Nepra has also circulated a draft adjustment mechanism for settling these differentials among stakeholders.
The regulator said its key principle was to keep UoSC for open-access consumers equal to those for similarly placed consumers of suppliers of last resort (SOLRs).
Nepra set a uniform loss factor of 8.04pc at the 11kV level and approved 1.51pc for consumers connected at 132kV, as proposed by the power division. It ruled that any additional charge to cover differentials among Discos or K-Electric will apply to all consumers, including open-access consumers and SOLR consumers.
Under the framework approved by the federal government, 800MW of generation capacity will be sold through competitive auctions for five years. The quantum may gradually increase after the initial trial, subject to government approval. There will be no upper or lower limit on bid values, which will remain fixed for one year.
Under the IMF programme timelines, approval of the auction guidelines was targeted for December, while Nepra’s approval of uniform wheeling charges was due in January 2026.
