What happened
According to Dawn, Pakistan's National Electric Power Regulatory Authority (Nepra) has notified use-of-system charges (UoSC) for bulk power consumers (BPCs) across all distribution companies, including K-Electric. These newly finalized rates govern the transportation of electricity over the national grid under the Competitive Trading Bilateral Contract Market (CTBCM) framework.
Key facts
The regulatory authority set distinct rate structures based on consumer category and auction participation, as reported by Dawn:
- Auction Participants: BPCs taking part in the upcoming 400MW auction will pay between Rs6.23 and Rs19.62 per unit. B-3 industrial consumers are assigned Rs6.23 per unit, B-4 industrial users Rs9.09 per unit, general supply (A-2/A-3) Rs19.14 per unit, single-point distribution (C-2/C-3) Rs14.95 to Rs19.62 per unit, and agricultural consumers Rs6.72 per unit.
- Non-Participants: BPCs not joining the auction face higher wheeling charges, spanning from Rs19.17 to Rs32.56 per unit depending on their consumer class.
- Fixed Grid Fees and Loss Factors: A fixed monthly grid charge of Rs1 per kilowatt of sanctioned load applies to all BPCs regardless of auction participation. Nepra established uniform loss factors of 8.04 percent at the 11kV level and 1.51 percent at the 132kV level.
- Consumer Base: There are currently more than 3,000 bulk power consumers nationwide.
Why it matters
According to Dawn, establishing uniform wheeling charges clears a critical hurdle for starting the nation's wholesale electricity market. The initial 400MW auction was previously delayed from June because the determination of these charges was pending. With the pricing finalized, the Independent System Operation (Ismo) is expected to execute the first 400MW auction within two months, forming part of a broader government plan to auction 800MW of generation capacity over five years.
Source: Dawn - Home · Published October 10, 2026 · Photo by Denise Jans on Unsplash