The federal government has taken a major step toward making electricity buying more flexible by allowing businesses and industries to choose their power suppliers under a new competitive system.
The Power Division has issued a Request for Proposal (RFP) for Pakistan’s first wheeling auction, allowing eligible businesses to purchase electricity from power plants on competitive terms.
The process will operate under the Competitive Trading Bilateral Contract Market (CTBCM), which is aimed at shifting the power sector from the existing single-buyer model toward a competitive electricity market.
Under the new system, businesses and industrial consumers will be able to buy electricity from power producers instead of depending entirely on the existing government-led procurement arrangement.
The new mechanism is intended to allow electricity producers and consumers to enter into transactions on competitive terms.
The reform is also expected to give industries access to competitively priced electricity and help reduce their power costs.
The government aims to gradually expand the competitive trading framework as more consumers and electricity producers participate in the market.
The government will also auction 800 megawatts of electricity over the next five years, with 400 megawatts being offered in the first auction.
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