Industrial Consumers to Buy Power Directly From Suppliers
Pakistan has taken a major step toward establishing a competitive electricity market after the National Electric Power Regulatory Authority (NEPRA) … Read More The post Industrial Consumers to Buy Power Directly From Suppliers appeared first on ProPakistani .
The National Electric Power Regulatory Authority (NEPRA) of Pakistan has recently determined the Use of System Charge, a crucial regulatory step, paving the way for a competitive electricity market, according to the Ministry of Energy. Federal Minister for Energy Sardar Awais Ahmad Khan Leghari hailed the decision as a significant milestone for the nation's power sector.
The determination of the Use of System Charge is the final major regulatory prerequisite for the Competitive Trading Bilateral Contract Market (CTBCM) auction. This development will enable eligible industrial consumers to procure electricity directly from their preferred suppliers, bypassing the existing single-buyer system. The government anticipates that the competitive market will foster greater competition among power suppliers, leading to improved power generation efficiency and more favorable prices for consumers.
Additionally, the new market could enhance the utilization of existing power plants, reduce inefficiencies in the electricity supply chain, and promote the adoption of renewable energy and battery storage. Leghari emphasized that the competitive market could also help Pakistan make more efficient use of local energy resources and diminish reliance on costly imported fuels.
The NEPRA's decision establishes the necessary regulatory framework for direct electricity access, marking a substantial structural shift in Pakistan's power market.
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