The National Electric Power Regulatory Authority (Nepra) has approved uniform Use of System Charges (UoSC) for bulk electricity consumers opting for open access, clearing a major regulatory hurdle in Pakistan’s transition towards a competitive electricity market.
Under the decision, eligible consumers participating in the competitive wheeling auction under the Competitive Trading Bilateral Contract Market (CTBCM) will pay uniform grid charges ranging from Rs6.23 to Rs19.62 per unit, depending on their category.
The charges cover transmission, distribution and cross-subsidy components, along with a fixed grid charge of Rs1 per kilowatt per month based on sanctioned load.
Consumers seeking open access without participating in the competitive auction will face additional stranded-cost charges. Their total variable UoSC will range between Rs19.17 and Rs32.56 per unit, with the stranded-cost component set at Rs12.94 per kWh for 11kV consumers and Rs16.35 per kWh for those connected at 132/66kV.
The determination follows a federal government request for uniform wheeling charges across the 11 former Wapda distribution companies and K-Electric. Nepra said uniformity was necessary to provide a level playing field for bulk electricity consumers and other open-access users.
The regulator also approved uniform transmission and distribution loss factors of 8.04% for 11kV consumers and 1.51% for consumers connected at 132/66kV. It rejected the government’s proposed loss factor of 8.42% for 11kV connections.
Nepra also rejected a proposal to impose any UoSC-related additional charge exclusively on wheeling consumers. It ruled that such charges should apply equally to open-access consumers and those supplied by suppliers of last resort to avoid discrimination.
Differences among distribution companies resulting from uniform UoSC will be settled through the existing mechanism used for uniform end-consumer tariffs. Nepra also directed the government, distribution companies, K-Electric and the Independent System and Market Operator to develop a mechanism for dealing with energy differentials arising from uniform loss factors.
Federal Energy Minister Sardar Awais Ahmad Khan Leghari welcomed the determination, describing it as a “historic milestone” and the final major regulatory requirement for operationalising open access under the CTBCM.
He said the decision would pave the way for Pakistan’s first CTBCM auction, enabling eligible industrial consumers to purchase electricity directly from suppliers of their choice rather than remaining dependent solely on their respective distribution companies.
According to the minister, greater competition could improve generation efficiency, plant utilisation and reliability while encouraging more competitively priced electricity. He said the market could also facilitate greater participation by renewable energy, battery storage and other flexible resources, potentially reducing reliance on expensive imported fuels.
Nepra has directed the distribution companies to immediately submit UoSC petitions based on the tariffs determined for 2026. The federal government is also required to notify the decision in the official Gazette within the prescribed period.
