NEPRA Notifies Wheeling Charges for Open-Access Electricity Market

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has officially notified the use-of-system charges (UoSC) ranging from Rs6.23 to Rs19.62 per unit for bulk power consumers across Pakistan, marking a crucial milestone in operationalising the country’s open-access competitive electricity market.

Under the newly approved Competitive Trading Bilateral Contract Market (CTBCM) framework, the tariff determination applies to large industrial and commercial entities, including bulk consumers within K-Electric’s jurisdiction. The wheeling charges encompass transmission and distribution fees, fixed grid charges, and cross-subsidies. As per the notified schedule, B-3 industrial consumers will pay Rs6.23 per unit, while B-4 industrial users will be charged Rs9.09 per unit to transport energy across the national grid. Meanwhile, C-2 and C-3 single-point distribution consumers face charges between Rs14.95 and Rs19.62 per unit, levied separately from generation prices negotiated directly with private energy suppliers.

The regulatory approval paves the way for structural reform in Pakistan’s energy landscape, enabling more than 3,000 eligible bulk power consumers nationwide to procure electricity directly from independent power producers rather than relying exclusively on state-backed distribution utilities. Economic experts consider this deregulation a pivotal transition toward breaking power sector monopolies, encouraging private investment, and fostering cost-reflective market efficiency for large-scale industrial consumers.

The newly approved charges will immediately govern participants in the upcoming 400-megawatt open-access electricity auction. Regulators and market operators are expected to oversee initial bilateral transactions closely as private suppliers and industrial consumers begin formalising long-term commercial contracts under the CTBCM system.