Leghari welcomes NEPRA decision on competitive electricity market

Islamabad (Web Desk): Federal Minister for Energy Sardar Awais Ahmad Khan Leghari has welcomed NEPRA’s decision to determine the Use of System Charges, describing it as a significant development toward establishing a competitive electricity market in Pakistan.

The energy minister said the determination of Use of System Charges was the final major regulatory requirement for the Competitive Trading Bilateral Contract Market (CTBCM), paving the way for the next phase of its auction process.

According to Leghari, the competitive electricity market will bring a major shift from Pakistan’s existing single-buyer model. Under the new arrangement, eligible industrial consumers will be able to purchase electricity directly from suppliers of their choice through bilateral agreements.

He said greater competition in electricity procurement would encourage more efficient power generation, improve pricing and help make better use of existing power plants.

The minister added that the new market structure would also create greater opportunities for renewable energy, battery storage and locally available low-cost energy resources.

Leghari further noted that a competitive electricity market could help reduce dependence on expensive imported fuels while addressing inefficiencies within the power sector.

The federal minister reiterated that the Ministry of Energy remains committed to implementing the competitive electricity market in a transparent and effective manner.