Power market: from paper to practice
EDITORIAL: Power regulator Nepra’s approval of uniform Use of System Charges (UoSC) is an important step towards finally giving substance to Pakistan’s long-delayed competitive electricity market. The decision attempts to address a fundamental requirement of an open-access regime: consumers should be able to choose their electricity supplier without facing an arbitrary difference in the cost of…
Pakistan's power regulator Nepra has approved a uniform Use of System Charges (UoSC) for the country's electricity market, marking a significant step towards achieving a competitive and open-access system. This decision aims to ensure that consumers can choose their electricity supplier without facing arbitrary differences in price, as the wheeling charge, which represents the cost of using the national grid, should be non-discriminatory.
The approval comes as the Commercial Market Operations Date was announced in January, with the first competitive auction slated for June. However, the success of the new market hinges on the timely and transparent implementation of the UoSC, as well as the resolution of issues related to transmission and distribution losses.
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