NEPRA Sets Wheeling Charges, Clearing Way for Pakistan’s First 400MW Power Auction
The National Electric Power Regulatory Authority (NEPRA) has notified electricity wheeling charges ranging from Rs. 6.23 to Rs. 19.62 per unit for bulk power consumers participating in Pakistan’s competitive electricity market, clearing the way for the country’s first 400-megawatt (MW) electricity auction.
The charges will apply to consumers of all distribution companies, including K-Electric, who use the national grid to transport electricity purchased directly from private suppliers under the Competitive Trading Bilateral Contract Market (CTBCM).
New Wheeling Charges
The rates cover transmission and distribution costs, a fixed grid charge, and cross-subsidies. Consumers will pay these charges in addition to the agreed electricity supply price.
Under the competitive auction, B-3 industrial consumers will pay Rs. 6.23 per unit, while B-4 industrial consumers will pay Rs. 9.09 per unit. C-2 and C-3 single-point distribution consumers will face charges ranging from Rs. 14.95 to Rs. 19.62 per unit.
General supply consumers in categories A-2 and A-3 will pay Rs. 19.14 per unit, while agricultural consumers will pay Rs. 6.72 per unit.
Higher Costs Without Auction
Consumers who do not participate in the competitive wheeling auction will face substantially higher charges, ranging from Rs. 19.17 to Rs. 32.56 per unit, depending on their category.
B-3 and B-4 industrial consumers will pay Rs. 19.17 and Rs. 25.45 per unit, respectively, while C-2 and C-3 consumers will pay Rs. 31.30 and Rs. 32.56 per unit. A-2 and A-3 consumers will pay Rs. 32.08 per unit, and agricultural consumers will pay Rs. 19.66 per unit.
A fixed grid charge of Rs. 1 per kilowatt per month, based on sanctioned load, will apply to both groups, regardless of auction participation. Pakistan currently has slightly more than 3,000 bulk power consumers.
First 400MW Auction
The commercial market operation date for the CTBCM was declared on January 22, 2026, with the first auction originally scheduled for June. However, the auction was delayed because wheeling charges had not been finalized and notified.
The Independent System and Market Operator (ISMO) is expected to conduct the first 400MW auction within the next couple of months. The government has allocated 800MW for competitive auctions in two phases.
Uniform Rates Across the Grid
NEPRA determined uniform charges after considering input from the Power Division, ISMO, K-Electric, and bulk power consumers. The discussions covered the calculation and settlement of transmission costs, cross-subsidies, differences between distribution companies, and transmission and distribution losses.
The regulator set a uniform loss factor of 8.04% for consumers connected at 11 kilovolts and 1.51% for those connected at 132 kilovolts.
NEPRA also ruled that any additional charges required to cover differences among distribution companies and K-Electric would apply to all consumers, including those purchasing electricity through open access and those served by suppliers of last resort.
This approach is intended to ensure that open-access consumers face charges equivalent to those paid by comparable consumers served by their regular suppliers.
800MW Up for Auction
Under the federal government’s framework, 800MW of generation capacity will be auctioned competitively for five years. The volume could increase after the initial trial, subject to government approval.
ISMO is expected to announce the auction calendar and detailed procedures shortly. Bid values will have no upper or lower limits and will remain fixed for one year.
The government’s earlier timeline under the International Monetary Fund program had targeted approval of auction guidelines in December and NEPRA’s approval of uniform wheeling charges in January 2026.
The post NEPRA Sets Wheeling Charges, Clearing Way for Pakistan’s First 400MW Power Auction appeared first on ProPakistani.
