Pakistan Begins Electricity Market Reform With 400MW Wheeling Auction

ISLAMABAD: The federal government on Sunday invited Request for Proposals (RFPs) for Pakistan’s first electricity wheeling auction under the Competitive Trading Bilateral Contract Market (CTBCM), as Energy Minister Sardar Awais Ahmad Khan Leghari announced that the government would stop purchasing electricity.

Speaking in a televised address from Islamabad, Leghari said the government was stepping away from electricity purchases to allow power producers and consumers to conduct direct transactions.

“The government is practically exiting electricity purchases from today,” he said.

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وفاقی وزیر توانائی سردار اویس احمد خان لغاری کا CTBCM کے تحت بجلی کے مسابقتی نظام کی جانب اہم پیغام۔
اب بجلی پیدا کرنے والے اور بڑے صارفین مسابقتی بنیادوں پر بجلی کی خرید و فروخت کر سکیں گے، جبکہ پہلے مرحلے میں ایک میگاواٹ سے زیادہ بجلی استعمال کرنے والے صارفین اس نظام سے مستفید… pic.twitter.com/hrGGmX56Pb

— Awais Leghari (@akleghari) September 20, 2026

The announcement came days after the National Electric Power Regulatory Authority (Nepra) approved uniform Use of System Charges (UoSC) for open-access bulk electricity consumers. The verdict permits entitled consumers to take their electricity providers.

400 megawatts of electricity will be offered in the first phase, while the government plans to auction a total of 800MW over the next five years, according to Leghari.

He said industries and businesses would be able to purchase electricity directly from power plants through a competitive system. Initially, the new mechanism will apply to industrial and other large consumers using more than one megawatt.

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I am proud to announce that the RFP for 400 MW of wheeling has been issued today.
Decades old commitment of different governments has been practically implemented by PM Shahbaz Sharifs Team Power.
Suppliers and Consumers of Power can now transact with each other. No more… pic.twitter.com/SaRPwQhEtv

— Awais Leghari (@akleghari) September 20, 2026

According to Leghari, the electricity market would slowly enlarge in the coming years, ultimately giving normal users the option to choose their electricity providers.

He said the new system could lead to lower electricity costs for Pakistani industries, helping them compete in international markets and increase exports.

The minister clarified that electricity is presently acquired through a centralized system and then provided to consumers. He said concerns had long existed over the terms and conditions governing power purchases, particularly those involving independent power producers (IPPs).

In a separate post on X, Leghari said the government led by Prime Minister Shehbaz Sharif had implemented a commitment that previous governments had discussed for decades.

He said power producers and consumers could now conduct transactions directly, while sharing the public notice inviting proposals for the first 400MW electricity wheeling auction.