Nepra’s UoSC decision hailed

ISLAMABAD: The Federal Minister for Energy (Power Division), Sardar Awais Ahmad Khan Leghari, and the Ministry of Energy (Power Division) have welcomed the decision of the National Electric Power Regulatory Authority (Nepra) on the determination of the Use of System Charge (UoSC) for open access users of the electricity network under the Competitive Trading Bilateral Contract Market (CTBCM) regime. According to an official statement, Federal Minister said that the determination of the UoSC is a historic milestone in the reform and modernisation of Pakistan’s power sector. It was the final critical regulatory step required for operationalising open access under CTBCM, paving the way for the issuance of the RFP for Pakistan’s first CTBCM auction process. He said that establishing a competitive electricity market is a key component of the broader power sector reform agenda, under which the necessary institutional, regulatory, technical and market requirements have been addressed to move Pakistan from the traditional single-buyer electricity market towards a competitive and consumer-oriented electricity market. READ MORE: Nepra greenlights UoSC for bulk consumers With this development, eligible industrial consumers will, for the first time, be able to bilaterally procure electricity from their choice of power suppliers through a competitive market mechanism, rather than being restricted to purchasing electricity solely from their respective distribution companies. The Federal Minister said that the benefits of a competitive market will not be limited to industrial consumers but also have the potential to benefit ordinary consumers. Greater competition in power procurement can encourage more efficient generation, improve utilisation of existing power plants, create incentives for better-priced and reliable electricity supply, and reduce inefficiencies across the electricity value chain. He said that the competitive market will also support greater participation of renewable energy, battery energy storage and other flexible energy resources. This can help improve the utilisation of indigenous and low-cost energy resources, enhance the reliability of the power system and reduce dependence on expensive imported fuels. The Federal Minister appreciated Nepra’s role and said that the decision on the UoSC provides the necessary regulatory framework for open access and reflects the coordinated efforts of the Ministry of Energy (Power Division), Nepra and other relevant stakeholders. He said that the launch of the first CTBCM auction process will represent not merely a regulatory or electricity procurement milestone, but a significant structural transformation of Pakistan’s electricity market, taking the country towards a more competitive and consumer-centric power sector. Federal Minister said that Power Division remains committed to completing the remaining requirements and operationalising the competitive electricity market in a transparent, efficient and orderly manner, creating greater choice for eligible consumers and, ultimately, establishing a more efficient and sustainable electricity system for all consumers of Pakistan. Copyright Business Recorder, 2026

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