KARACHI: Leading stakeholders from Pakistan’s energy and policy landscape convened at a high-level multi-stakeholder dialogue hosted by Renewables First, Pakistan’s think tank for energy and environment, on Wednesday in Islamabad to assess the financial and technical readiness for operationalising a competitive electricity market.
The event brought together senior government officials, legislators, regulators, development partners and power sector experts to chart a course for implementing the long-delayed competitive trading bilateral contracts market (CTBCM) reform.
The CTBCM, already approved by the Economic Coordination Committee and the National Electric Power Regulatory Authority (Nepra), and piloted through a six-month test run by CPPA, has yet to commence commercial operations. Participants expressed concern that the power sector remains locked in a single-buyer model, where CPPA-G acts as the sole purchaser and Discos hold exclusive distribution licences. This setup has contributed to rising capacity payments, underutilised generation capacity and limited private sector participation. Ramsha Panhwar, energy analyst at Renewables First, offered a critical analysis of one of the most contentious components of the CTBCM framework: the Use of System Charge (UoSC). She noted that irrational and excessive charges have hindered market competitiveness.
