ISLAMABAD(National Times)-The Nat\u00adional Electric Power Reg\u00adulatory 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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The UoSC includes transmission and distribution charges, a fixed grid charge and cross-subsidy.<\/p>\n\n\n\n
A B-3 industrial consu\u00admer will be charged Rs6.23 per unit, while a B-4 industrial consumer will pay Rs9.09 per unit. These charges will be in addition to the electricity supply price, including generation cost, to be agr\u00adeed between the private-sector supplier and the BPC.<\/p>\n\n\n\n
At present, there are a little over 3,000 BPCs across the country.<\/p>\n\n\n\n
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. Agricultural consumers will pay Rs6.72 per unit.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. A-2 and A-3 consumers will pay Rs32.08 per unit, while agricultural consumers will be charged Rs19.66 per unit.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. However, the auction was delayed because UoSC charges had not been determined and notified.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. The government has allocated a total of 800MW for auction in two phases.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Under government directives, the impact of inter-Disco differentials arising from uniform UoSC rates will not be borne exclusively by wheeling consumers.<\/p>\n\n\n\n
Nepra had also circulated a draft adjustment mechanism for settling inter-Disco differentials among relevant stakeholders.<\/p>\n\n\n\n
The regulator said the key principle was to ensure that UoSC applicable to open-access consumers remained equal to those applicable to similarly pla\u00adced consumers of suppliers of last resort (SOLRs).<\/p>\n\n\n\n
Based on the transmission and distribution losses of individual Discos, Nepra determined a uniform loss factor of 8.04pc at the 11kV level. For consumers connected at 132kV, it approved a uniform loss factor of 1.51pc, as proposed by the power division.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Under the framework, 800MW of generation capacity will be sold through competitive auctions for five years. The quantum could gradually increase after the initial trial, subject to government approval.<\/p>\n\n\n\n
Ismo will now hold the first 400MW auction under a process approved by Nepra a few days ago. It is also expected to announce the auction calendar and detailed procedure shortly.<\/p>\n\n\n\n
There will be no upper or lower limit on bid values, which will remain fixed for one year.<\/p>\n\n\n\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD(National Times)-The Nat\u00adional Electric Power Reg\u00adulatory 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. Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers participating in the upcoming 400MW auction […]<\/p>\n","protected":false},"author":2,"featured_media":134610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-134609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest_news","entry"],"yoast_head":"\n