Nepra clears key hurdle to competitive power market
• Approves uniform charges for all Discos; participating bulk power consumers to pay Rs6.23-Rs19.62 per unit • Clears path for first 400MW open-access electricity auction ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday approved use of system charges (UoSC) ranging from Rs6.23 to Rs19.62 per unit for bulk power consumers (BPCs) of all distribution companies…
The National Electric Power Regulatory Authority (Nepra) recently made a significant decision that clears a key hurdle for a competitive power market in Pakistan. The regulatory body approved uniform charges for bulk power consumers (BPCs) of all distribution companies participating in the electricity trading market. These charges, ranging from Rs6.23 to Rs19.62 per unit, will cover transmission and distribution costs, fixed grid charges, and cross-subsidies.
The approval allows participating BPCs to join an upcoming 400-megawatt open-access electricity auction. Nepra's decision also outlines transport rate charges for non-participating BPCs, which could be significantly higher. This uniform rate announcement aims to formally launch the competitive wholesale electricity market, with the Independent System Operation (ISMO) auctioning 400MW of electricity in the coming months.
The government has allocated 800MW for auction in two phases. Nepra's determination considered submissions from various stakeholders, including the Power Division, ISMO, K-Electric, and BPCs, regarding determining and settling UoSC, including inter-DISCO differentials, cross-subsidies, and transmission and distribution (T&D) losses.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
