ISLAMABAD: The Competition Commission of Pakistan (CCP) has called on the government to fast-track the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) model to open up Pakistan’s wholesale electricity market, fostering greater competition and efficiency in the power sector.
In its Competition Assessment Study on the Power Sector, the CCP stressed the need for retail competition as the ultimate goal, allowing consumers to choose their electricity suppliers. Approved by NEPRA in 2020, the CTBCM model is key to this transformation, enabling bulk power consumers with loads of 1MW or more to purchase electricity from either distribution companies (Discos) or competitive suppliers.
The CCP identified several challenges hindering market development, including high capital barriers, monopolistic structures dominated by the National Transmission & Despatch Company (NTDC), aging infrastructure, and inefficiencies within state-owned Discos. These factors, along with the uniform tariff structure and subsidies, have stifled competition.
Key recommendations from the CCP include the immediate implementation of the CTBCM model, rationalization of system charges, decommissioning outdated power plants, and encouraging private sector involvement in transmission infrastructure. The CCP also advocated for reforming the business model of Discos and gradually introducing retail competition by lowering the 1MW threshold to give more consumers the ability to choose their electricity providers.
Story by Sohail Sarfaraz
