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Nepra clears use-of-system charges for competitive power market

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Kiani, K. (2026, October 10). Nepra clears use-of-system charges for competitive power market. Dawn. https://www.dawn.com/news/2036102/nepra-clears-use-of-system-charges-for-competitive-power-market

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Dawn · collected 2026-10-10 · by Khaleeq Kiani

Quick Summary

Nepra has set use-of-system charges for consumers participating in Pakistan's competitive electricity trading market, ranging from Rs6.23 to Rs19.62 per unit depending on consumer category and usage type. These charges apply to bulk power consumers including K-Electric and are intended to facilitate the launch of the Competitive Trading Bilateral Contract Market (CTBCM), with the first auction expected within months for 400MW of electricity, part of a total government allocation of 800MW in two phases. The notification also sets higher rates for non-participating consumers, ranging from Rs19.17 to Rs32.56 per unit.
Written by AI on 2026-10-10, from this article's own text only (the story summary below draws on all the coverage).

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Story summary

Nepra, the National Electric Power Regulatory Authority in Pakistan, on Friday approved use-of-system charges (UoSC) for bulk power consumers participating in the competitive electricity trading market. The charges range from Rs6.23 to Rs19.62 per unit and include transmission and distribution costs, a fixed grid charge, and cross-subsidies. These rates will apply to consumers involved in the upcoming 400MW auction under the Competitive Trading Bilateral Contract Market (CTBCM), allowing them to use the national grid for electricity transportation from suppliers to consumers at these additional costs. Presently, there are over 3,000 BPCs across Pakistan benefiting from this new regulatory framework.

Written for “Pakistan Power Market Reforms” on 2026-10-30, grounded in this article and the 0 other(s) covering the same event.

Story

📰 Pakistan Power Market Reforms
Economy/Business · 1 article(s) covering the same event.

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Claims extracted
30
sentences that state something as happening or true
Uncertain
7%
2 of 30 hedged ("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
72/100
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1
Economy/Business
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Dawn · 2460 article(s) · 3 correction(s) detected
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Who wrote this

Khaleeq Kiani
34 article(s) here · 1 carrying a prediction
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🔮 Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers participating in the upcoming 400MW auction will have to pay Rs6.23 to Rs19.62 per unit to use the national grid for transporting electricity from the supplier to the consumer.
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Also by Khaleeq Kiani
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Topics

ISLAMABAD Ismo K-Electric Nepra UoSC

Subjects

Nepra ORG · 5× K-Electric ORG · 4× UoSC ORG · 4× Discos ORG · 2× Ismo ORG · 2× BPC ORG · 1× CTBCM ORG · 1× ISLAMABAD GPE · 1× The Independent System Operation ORG · 1× The National Electric Power Regulatory Authority ORG · 1×

Narrative

Nepra had forwarded its UoSC determination to the government for uniform application after considering the views of the power division, Ismo, K-Electric and BPCs on the mechanism for calculating and settling the charges, including inter-Disco differentials, cross-subsidies and transmission and distribution losses.
framing: assertive · carried by 1 article(s) · first seen 2026-10-10
🔮 Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers participating in the upcoming 400MW auction will have to pay Rs6.23 to Rs19.62 per unit to use the national grid for transporting electricity from the supplier to the consumer.
2026-10-10 · Dawn
Nepra clears use-of-system charges for competitive power market · assertive framing

Claims (30 extracted, 2 hedged)

The National Electric Power Regulatory Authority (Nepra) on Friday notified use-of-system charges (UoSC) ranging from Rs6.23 to Rs19.62 per unit for bulk power consumers (BPCs) of all distribution companies, including K-Electric, participating in the competitive electricity trading market. asserted
Authority → notify → market
Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers participating in the upcoming 400MW auction will have to pay Rs6.23 to Rs19.62 per unit to use the national grid for transporting electricity from the supplier to the consumer. asserted
consumers → participate → consumer
The UoSC includes transmission and distribution charges, a fixed grid charge and cross-subsidy. asserted
UoSC → include → charges
A B-3 industrial consumer will be charged Rs6.23 per unit, while a B-4 industrial consumer will pay Rs9.09 per unit. asserted
consumer → charge → unit
These charges will be in addition to the electricity supply price, including generation cost, to be agreed between the private-sector supplier and the BPC. asserted
charges → include → supplier
The UoSC for C-3 and C-2 single-point distribution consumers has been notified at Rs14.95 to Rs19.62 per unit, while A-2 and A-3 general supply consumers will be charged Rs19.14 per unit. asserted
consumers → notify → unit
Agricultural consumers will pay Rs6.72 per unit. asserted
consumers → pay → unit
For BPCs not participating in the competitive wheeling auction, UoSC rates have been set significantly higher, ranging from Rs19.17 to Rs32.56 per unit, depending on the consumer category. asserted
rates → participate → category
In this category, B-3 and B-4 consumers will pay Rs19.17 and Rs25.45 per unit, respectively, while C-2 and C-3 consumers will be charged Rs31.30 and Rs32.56 per unit. asserted
consumers → pay → unit
A-2 and A-3 consumers will pay Rs32.08 per unit, while agricultural consumers will be charged Rs19.66 per unit. asserted
consumers → pay → unit
A fixed grid charge of Rs1 per kilowatt per month, based on sanctioned load, will also apply to both categories, irrespective of whether they participate in the competitive auction. asserted
they → base → auction
The commercial market operation date for the CTBCM had already been declared as Jan 22, 2026, with the first market auction originally scheduled for June. asserted
auction → declare → June
However, the auction was delayed because UoSC charges had not been determined and notified. asserted
charges → delay → ?
The notification of uniform UoSC rates for all distribution companies and K-Electric is intended to pave the way for the formal launch of the competitive wholesale electricity market. asserted
notification → intend → market
The Independent System Operation (Ismo), a new power division entity, is expected to auction 400MW of electricity in the first phase within the next couple of months. asserted
Operation → expect → months
The government has allocated a total of 800MW for auction in two phases. asserted
government → allocate → phases
Nepra had forwarded its UoSC determination to the government for uniform application after considering the views of the power division, Ismo, K-Electric and BPCs on the mechanism for calculating and settling the charges, including inter-Disco differentials, cross-subsidies and transmission and distribution losses. asserted
Nepra → forward → differentials
Under government directives, the impact of inter-Disco differentials arising from uniform UoSC rates will not be borne exclusively by wheeling consumers. asserted
impact → arise → consumers
Nepra had also circulated a draft adjustment mechanism for settling inter-Disco differentials among relevant stakeholders. asserted
Nepra → circulate → stakeholders
The regulator said the key principle was to ensure that UoSC applicable to open-access consumers remained equal to those applicable to similarly placed consumers of suppliers of last resort (SOLRs). asserted
UoSC → say → resort
Based on the transmission and distribution losses of individual Discos, Nepra determined a uniform loss factor of 8.04pc at the 11kV level. asserted
Nepra → base → level
For consumers connected at 132kV, it approved a uniform loss factor of 1.51pc, as proposed by the power division. asserted
it → connect → division
Nepra ruled that any additional charge required to cover differentials among Discos or K-Electric would apply to all consumers, including open-access consumers and those of SOLRs, thereby maintaining uniformity. asserted
charge → rule → uniformity
The federal government had earlier approved framework guidelines for the competitive wheeling auction of 800MW of electricity and for moving towards integrated energy planning across the country. asserted
government → approve → country
Under the framework, 800MW of generation capacity will be sold through competitive auctions for five years. asserted
800MW → sell → years
The quantum could gradually increase after the initial trial, subject to government approval. uncertain
quantum → increase → approval
Ismo will now hold the first 400MW auction under a process approved by Nepra a few days ago. asserted
Ismo → hold → Nepra
It is also expected to announce the auction calendar and detailed procedure shortly. asserted
It → expect → calendar
There will be no upper or lower limit on bid values, which will remain fixed for one year. asserted
which → remain → year
According to timelines set under the IMF programme, approval of the auction guidelines had been targeted for December, while approval of uniform wheeling charges by Nepra was due in January 2026. uncertain
approval → accord → January
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