- Energy minister hails Nepra decision as “historic milestone”.
- Move clears way for Pakistan’s first CTBCM auction: Leghari.
- Uniform charges required to ensure level playing field: Nepra.
The National Electric Power Regulatory Authority (Nepra) has approved uniform Use of System Charges (UoSC) for open-access bulk electricity consumers, allowing eligible users to choose their power suppliers in a major step towards a more competitive electricity market.
The regulator approved uniform grid charges ranging from Rs6.23 to Rs19.62 per unit, depending on consumer category, for users opting for open access through the competitive wheeling auction process under the Competitive Trading Bilateral Contract Market (CTBCM), according to The News.
The charges include transmission, distribution and cross-subsidy components, plus a fixed grid charge of Rs1 per kilowatt per month based on sanctioned load.
For consumers taking open access without participating in the competitive auction, Nepra approved additional stranded-cost charges.
Total variable UoSC for these consumers ranges from Rs19.17 to Rs32.56 per unit, depending on category. The stranded-cost component is Rs12.94 per kWh at 11 kV and Rs16.35 per kWh at 132/66 kV.
The decision follows a federal government motion seeking uniform wheeling charges across the 11 former Wapda distribution companies and K-Electric. Nepra said uniform charges are required to ensure a level playing field for bulk power consumers and other open-access users.
Nepra also approved uniform transmission and distribution losses factor of 8.04% for 11 kV consumers and 1.51% for consumers connected at 132/66 kV, rejecting the government’s proposed 8.42% figure for 11 kV.
Importantly, the regulator rejected the proposal to recover any UoSC-related additional charge exclusively from wheeling consumers. It ruled that the charge must apply to both open-access users and consumers served by suppliers of last resort, to preserve uniformity and prevent discrimination.
Inter-Disco differences arising from uniform UoSC will instead be settled through the existing mechanism used for uniform end-consumer tariffs. Nepra also ordered the government, Discos, K-Electric and the Independent System and Market Operator to develop a mechanism for any energy differentials caused by uniform loss factors.
Federal Minister for Energy Sardar Awais Ahmad Khan Leghari welcomed the decision, calling the UoSC determination a “historic milestone” and the final critical regulatory step needed to operationalise open access under CTBCM. He said it clears the way for issuance of the request for proposals for Pakistan’s first CTBCM auction.
Leghari said competitive procurement would give eligible industrial consumers the ability to bilaterally purchase electricity from their chosen suppliers instead of being restricted to their distribution companies.
He said greater competition could improve generation efficiency, power-plant utilisation and reliability while creating incentives for better-priced electricity.
The minister also said the competitive market could facilitate greater participation of renewable energy, battery storage and other flexible resources, helping reduce dependence on expensive imported fuels.
Nepra has directed the XW-Discos to immediately submit UoSC petitions based on the 2026 determined tariffs, while the federal government must notify the decision in the official Gazette within the statutory period.
