ISLAMABAD: Pakistan expects to complete its first 200-megawatt electricity transaction under a competitive wheeling auction by June, Federal Minister for Power Sardar Awais Ahmed Khan Leghari said Tuesday, after a summary on the 200MW auction was sent to the prime minister for approval, a key step in the country’s transition toward a competitive power market.
The 200MW transaction will be conducted through a wheeling auction under the newly operational Competitive Market Operations Date (CMOD) regime. Under the mechanism, the government will determine buyers for up to 200MW of electricity in the first phase, with the process to be managed by the Independent System and Market Operator.
Leghari said the federal government plans to auction a total of 800MW of electricity through wheeling during the current year, signaling an accelerated push toward market-based trading after decades of structural delays.
Under the wheeling framework, large power consumers will be able to enter into direct agreements with power plants for electricity supply, bypassing the traditional single-buyer model. Consumers will pay only a network usage fee to government-owned transmission and distribution companies for use of the grid infrastructure.
The minister described the launch of CMOD as a “major milestone,” noting that competitive market reforms were first conceptualised in the early 1990s but faced prolonged delays in implementation. He said regulatory matters, including the final determination of wheeling charges, remain under process, but expressed confidence that auction-based transactions would proceed after April, culminating in the first completed 200MW deal by June. The government is working to promote competitive bilateral contracts in the electricity market to improve efficiency, transparency and cost optimisation in the power sector, Leghari added. Officials said the shift toward wheeling and competitive trading is expected to gradually transform Pakistan’s power market from a centralised purchasing model to a more open and market-driven structure.
