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Pakistan’s Nepra approves charges for competitive power market

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UA.NEWS
Pakistan’s Nepra approves charges for competitive power market
AI Summary

Pakistan's energy regulator has approved new system charges for large electricity consumers participating in a competitive trading market. This move aims to facilitate a 400 MW auction and transition the country toward a more open, market-based electricity grid.

Why it matters

This represents a significant structural reform in Pakistan's energy sector, intended to improve efficiency and grid access for industrial users.

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--> Pakistan’s National Electric Power Regulatory Authority, Nepra, has approved uniform system charges for large electricity consumers that will participate in the competitive electricity trading market. The decision clears the way for the first 400 MW auction for consumers with open access to the grid, Dawn reports .

System charges for participants in the competitive market will range from 6.23 to 19.62 Pakistani rupees per unit of electricity, depending on the consumer category. They will cover electricity transmission and distribution costs, fixed charges for using the grid, and cross-subsidization.

For industrial consumers in category B-3, the system charge was set at 6.23 rupees per unit, and for category B-4 at 9.09 rupees. These amounts will be paid in addition to the cost of electricity supply, including generation costs, which will be agreed upon by private suppliers and large consumers.

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