Power Division hails NEPRA's CTBCM use of system charge decision

September 08, 2026 (MLN): The Ministry of Energy (Power Division) has welcomed the National Electric Power Regulatory Authority's (NEPRA) determination of the Use of System Charge for open access users under the Competitive Trading Bilateral Contract Market (CTBCM) regime, calling it the final regulatory hurdle before the Request for Proposal (RFP) for Pakistan's first CTBCM auction can be issued.

With this determination in place, eligible industrial consumers will for the first time be able to procure electricity bilaterally from suppliers of their choice, rather than being confined to purchasing solely from their respective distribution companies.

Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari termed the determination a historic milestone in the reform and modernization of Pakistan's power sector, describing it as the outcome of coordinated efforts between the Power Division, NEPRA and other stakeholders, according to a press release issued.

The minister said the shift towards a competitive electricity market forms a core part of the broader power sector reform agenda, under which the institutional, regulatory, technical and market prerequisites have been put in place to move the country away from the traditional single-buyer model.

He said the benefits of competition would not be confined to industrial consumers alone, as improved efficiency in power procurement, better utilization of existing generation capacity, and stronger incentives for reliable and competitively priced supply could extend to ordinary consumers as well, while also reducing inefficiencies across the electricity value chain.

The minister added that the competitive market framework would also support greater integration of renewable energy, battery storage and other flexible resources, helping improve the use of indigenous, low-cost energy sources, strengthen system reliability, and lower reliance on costly imported fuels.

He described the launch of the first CTBCM auction as more than a regulatory or procurement milestone, calling it a structural transformation of Pakistan's electricity market that would push the sector towards greater competitiveness and consumer orientation.

The Power Division, he said, remains committed to completing the remaining requirements for operationalizing the competitive market in a transparent and orderly manner, with the aim of expanding consumer choice and building a more efficient, sustainable electricity system for the country.

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