National Electric Power Regulatory Authority (Nepra) has approved a new wheeling auction process as part of major reforms in Pakistan’s power sector, paving the way for a competitive electricity market.
Under the new system, buyers will be able to purchase electricity directly from power plants. Nepra stated that a minimum of one megawatt must be purchased, while consumers will also be required to pay grid charges to transmit electricity to their point of use.
The initiative is expected to promote competition and transparency in the energy sector. According to officials, a total of 800 megawatts of electricity will be auctioned to large consumers over the next five years, with an initial 200 megawatts set to be offered in June.
The draft for the wheeling auction mechanism was submitted by the market operator and approved by Nepra. Meanwhile, the authority has also issued decisions regarding competitive market operations.
Federal Minister for Energy Awais Leghari termed the move a significant milestone, stating it marks the transition from a single-buyer model to a competitive electricity market. He added that electricity procurement will now take place through transparent, automated, and competitive bidding processes.
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