Nepra clears key hurdle to competitive power market

The National Electric Power Regulatory Authority approved uniform use of system charges of Rs6.23 to Rs19.62 per unit for bulk power consumers of all distribution companies, according to Dawn. The decision, taken on Monday, applies to consumers participating in the competitive power trading market and clears the way for an upcoming 400MW open-access auction. The payment is meant to meet transmission and distribution expenses, a fixed grid component and cross-subsidy adjustments.

Under the structure, a B-3 industrial consumer will pay Rs6.23 per unit while a B-4 consumer faces Rs9.09, on top of the power supply rate. Consumers opting out of the auction face higher transport rates, between Rs19.17 and Rs32.56 by category, while all categories pay a grid levy of Rs1 per kilowatt monthly on sanctioned load.

The rates apply to K-Electric as well as the other Discos, while ISMO, a newly created power division entity, will hold the first auction of 400MW in the coming months. Dawn added that a total of 800MW has been earmarked for auction across two phases, and both IMF timelines for the guidelines and wheeling charges have been met.