Islamabad: The Federal Minister for Energy (Power Division), Sardar Awais Ahmad Khan Leghari, has praised the National Electric Power Regulatory Authority’s (NEPRA) recent decision regarding the Use of System Charge determination for open access users, marking a significant step towards establishing a competitive electricity market in Pakistan. This decision is seen as a pivotal regulatory milestone in the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) regime, which aims to modernize the country’s power sector.
According to Press Information Department, Minister Leghari emphasized that this determination is essential for the operationalization of open access, paving the way for the first Competitive Trading Bilateral Contract Market auction process in Pakistan. He highlighted that moving towards a competitive electricity market is a crucial part of the broader power sector reform agenda, which addresses institutional, regulatory, technical, and market requirements for transitioning from a traditional single-buyer system to a consumer-oriented market.
This development will allow eligible industrial consumers to procure electricity bilaterally from their preferred power suppliers through a competitive mechanism, rather than relying solely on their respective distribution companies. The minister noted that while industrial consumers will be the immediate beneficiaries, ordinary consumers could also gain from increased competition, which could lead to more efficient power generation, better utilization of existing plants, and incentives for reliable and well-priced electricity supply.
Leghari also pointed out that the competitive market framework could enhance the participation of renewable energy, battery storage, and other flexible resources, improving the use of indigenous energy resources, boosting system reliability, and decreasing reliance on costly imported fuels.
The Federal Minister acknowledged NEPRA’s role in providing the necessary regulatory framework for open access and praised the coordinated efforts of the Ministry of Energy, NEPRA, and other stakeholders. He stated that the upcoming CTBCM auction process represents not just a regulatory milestone, but also a structural transformation of Pakistan’s electricity market towards a more consumer-centric power sector.
Minister Leghari reiterated the Power Division’s commitment to fulfilling the remaining requirements for operationalizing the competitive electricity market efficiently and transparently, aiming to offer greater choice to eligible consumers and establishing a sustainable electricity system for all in Pakistan.