The National Electric Power Regulatory Authority has approved uniform use of system charges for bulk power consumers, clearing a major hurdle to Pakistan’s competitive electricity market. The decision will allow eligible consumers to purchase electricity from private suppliers through open access. They will pay the national grid to transport power from the generation source to their premises.
The charges cover transmission and distribution costs, cross-subsidies and fixed grid expenses. Consumers must pay them in addition to the electricity supply price negotiated with private producers.
Pakistan has more than 3,000 bulk power consumers. The approved framework applies uniformly across all distribution companies, including K-Electric.
Nepra set the charge for B-3 industrial consumers at Rs6.23 per unit. B-4 industrial consumers will pay Rs9.09 per unit.
C-3 consumers will face a charge of Rs14.95 per unit. Rates for C-2 consumers will range between Rs17.74 and Rs19.62 per unit. A-2 and A-3 consumers will pay Rs19.14 and Rs19.10 per unit, respectively.
A fixed grid charge of Rs1 per kilowatt per month will also apply. Nepra will calculate it according to each consumer’s sanctioned load.
Higher costs outside the auction
Eligible consumers that seek open access without joining the competitive auction will pay substantially higher charges. These rates include stranded costs linked to existing electricity supply commitments.
Non-participating B-3 consumers will pay Rs19.17 per unit, while B-4 consumers will face Rs25.45 per unit. Charges for C-3 and C-2 consumers will rise to Rs31.30 and as much as Rs32.56 per unit.
The rates for non-participating A-2 and A-3 users will stand at Rs32.08 and Rs32.04 per unit, respectively.
Nepra reviewed submissions from the Power Division, the Independent System and Market Operator, K-Electric and industrial consumers before issuing its decision.
The regulator approved a uniform transmission and distribution loss factor of 8.04 percent for consumers connected at 11kV. It also accepted the Power Division’s proposed 1.51 percent loss factor for connections at 132kV.
Nepra said differences created by uniform charges must follow the existing inter-Disco settlement mechanism. It rejected the idea of passing those differences only to wheeling consumers.
The regulator also ruled that “additional charge shall be applied to all consumers, both open access users and consumers of the SOLRs” to maintain uniformity.
ISMO to launch first 400MW auction
ISMO will now conduct the first open-access auction for 400MW of electricity. It will announce the auction calendar and detailed procedures within days.
The government has allocated 800MW for sale in two phases under five-year arrangements. Officials plan to expand the volume after evaluating the trial phase.
Nepra has also approved amendments requiring auction projects to install battery energy storage equal to at least 10 percent of firm capacity. The requirement mainly targets expected solar and wind participation.
Bids will carry no upper or lower price limit. Successful bid values will remain fixed for one year.
The approvals advance reforms under Pakistan’s IMF programme. The original programme timelines required auction guidelines by December and uniform wheeling charges by January 2026.
