ISLAMABAD (The COW News Digital) Pakistan has initiated a major overhaul of its national power sector by launching its first-ever wheeling auction, shifting the energy market from a single-buyer model toward a competitive bilateral trade framework.
The Power Division issued a official Request for Proposal (RFP) under the Competitive Trading Bilateral Contract Market (CTBCM) model. Under the scheme, industrial enterprises and commercial entities will purchase power directly from power generation plants through open market bidding. The initial phase offers 400 megawatts (MW) for auction, with plans to scale total auctioned capacity to 800 MW over the next five years.
Federal Minister for Power Awais Leghari congratulated the Prime Minister and the nation on reaching the milestone, declaring that the federal government is formally stepping back from acting as the sole buyer of electricity. Addressing historical concerns surrounding Independent Power Producer (IPP) contracts and energy pricing, Leghari emphasized that the new transparent market will enable power producers and bulk consumers to negotiate purchase terms directly.
“The government will no longer purchase electricity nor sell it at forced tariffs,” Leghari stated. He explained that the first phase targets bulk consumers using over 1 MW, granting industrial units access to competitive power rates to bolster global export capabilities.
The Power Division projects that this competitive structure will lay the foundation for an open retail electricity market, eventually enabling general consumers to select their energy providers freely.
