Competitive power market gets nod

The Express Tribune reports that Nepra has given approval to standard use-of-system charges (UoSC) for bulk power buyers of distribution companies and K-Electric. Variable grid charges, set by consumer category, span Rs6.23 to Rs19.62 per unit. A fixed charge of Rs1 per kW each month will also apply, calculated on sanctioned load. Nepra's decision is a key step toward a wholesale power market that is open to competition.

Federal Energy Minister Sardar Awais Ahmad Khan Leghari welcomed the decision as a landmark for reform of the power sector. He called it the final hurdle before open access takes effect under the CTBCM framework, opening the way for a request for proposals for the first CTBCM auction. The government plans a first-phase auction of 400 MW under a competitive wheeling model, while eligible industrial buyers gain the option to purchase power from suppliers of their choice.

Nepra adopted the principle of equal treatment, meaning open-access users face UoSC identical to that of comparable buyers served by suppliers of last resort. Earlier, the Power Division wanted inter-Disco differences passed on to wheeling consumers, but ISMO and K-Electric argued that open-access buyers could then pay rates different from similar customers. On losses, Nepra set the uniform loss factor at 11kV at 8.04%, below the 8.42% the Power Division had claimed, and approved 1.51% for 132kV consumers.