ISLAMABAD: Pakistan's National Electric Power Regulatory Authority (NEPRA) has notified use-of-system charges ranging from 6.23 to 19.62 rupees per unit for bulk power consumers of all distribution companies, including K-Electric, participating in the competitive electricity trading market.
Under the Competitive Trading Bilateral Contract Market, open-access consumers participating in the upcoming 400-megawatt auction will pay the charges to use the national grid for transporting electricity from supplier to consumer. The charges include transmission and distribution costs, a fixed grid charge and cross-subsidy.
A B-3 industrial consumer will be charged 6.23 rupees per unit, while a B-4 industrial consumer will pay 9.09 rupees per unit. These charges are in addition to the electricity supply price, including generation cost, to be agreed between the private-sector supplier and the bulk power consumer. More than 3,000 such consumers exist across the country.
For C-3 and C-2 single-point distribution consumers, the charges were notified at 14.95 to 19.62 rupees per unit. A-2 and A-3 general supply consumers will be charged 19.14 rupees per unit, while agricultural consumers will pay 6.72 rupees per unit.
Bulk power consumers not participating in the competitive wheeling auction face significantly higher rates, ranging from 19.17 to 32.56 rupees per unit depending on category. B-3 and B-4 consumers in this category will pay 19.17 and 25.45 rupees per unit, respectively, while C-2 and C-3 consumers will be charged 31.30 and 32.56 rupees per unit. A-2 and A-3 consumers will pay 32.08 rupees per unit, and agricultural consumers will be charged 19.66 rupees per unit.
A fixed grid charge of 1 rupee per kilowatt per month, based on sanctioned load, will apply to both categories regardless of auction participation.
The commercial market operation date for the CTBCM had already been declared as Jan. 22, 2026, with the first market auction originally scheduled for June. The auction was delayed because the use-of-system charges had not been determined and notified.
The notification of uniform rates for all distribution companies and K-Electric is intended to pave the way for the formal launch of the competitive wholesale electricity market.
The Independent System Operation, a new power division entity known as Ismo, is expected to auction 400 megawatts of electricity in the first phase within the next couple of months. The government has allocated a total of 800 megawatts for auction in two phases.
Nepra forwarded its determination to the government for uniform application after considering views from the power division, Ismo, K-Electric and bulk power consumers on the mechanism for calculating and settling the charges, including inter-distribution company differentials, cross-subsidies and transmission and distribution losses.
Under government directives, the impact of inter-company differentials arising from uniform rates will not be borne exclusively by wheeling consumers. Nepra also circulated a draft adjustment mechanism for settling the differentials among relevant stakeholders.
The regulator said the key principle was ensuring that charges applicable to open-access consumers remained equal to those applicable to similarly placed consumers of suppliers of last resort.
Based on transmission and distribution losses of individual distribution companies, Nepra determined a uniform loss factor of 8.04% at the 11-kilovolt level. For consumers connected at 132 kilovolts, it approved a uniform loss factor of 1.51%, as proposed by the power division.
Nepra ruled that any additional charge required to cover differentials among distribution companies or K-Electric would apply to all consumers, including open-access consumers and those of suppliers of last resort, thereby maintaining uniformity.
The federal government earlier approved framework guidelines for the competitive wheeling auction of 800 megawatts and for moving toward integrated energy planning across the country. Under the framework, 800 megawatts of generation capacity will be sold through competitive auctions for five years. The amount could gradually increase after the initial trial, subject to government approval.
Ismo will now hold the first 400-megawatt auction under a process approved by Nepra a few days ago. It is also expected to announce the auction calendar and detailed procedure shortly. There will be no upper or lower limit on bid values, which will remain fixed for one year.
According to timelines set under the International Monetary Fund program, approval of the auction guidelines had been targeted for December, while approval of uniform wheeling charges by Nepra was due in January 2026.
