NEPRA approves Use of System Charge for open‑access users, paving way for first CTBCM auction
The Federal Minister for Energy welcomed NEPRA’s decision on the Use of System Charge (UoSC), a key regulatory step to operationalise open‑access electricity trading under the Competitive Trading Bilateral Contract Market (CTBCM).
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Positive · Buy bias
Power sector reforms and open‑access auction are positive for power generation companies; Buy bias.
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Sectors: Power — Positive · Buy bias. PSX tickers: HUBC, KAPCO. Power sector reforms and open‑access auction are positive for power generation companies; Buy bias.
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Open on Business Recorder## Regulatory milestone announced
The Federal Minister for Energy (Power Division), Sardar Awais Ahmad Khan Leghari, and the Ministry of Energy (Power Division) praised the National Electric Power Regulatory Authority’s (NEPRA) recent determination of the Use of System Charge (UoSC) for open‑access users of Pakistan’s electricity network under the Competitive Trading Bilateral Contract Market (CTBCM) regime.
## Significance for the power sector
The minister described the UoSC decision as a historic milestone in the reform and modernisation of Pakistan’s power sector. It completes the final regulatory requirement needed to operationalise open access under CTBCM and clears the path for issuing a Request for Proposals (RFP) for the country’s first CTBCM auction.
## How the new market will work
For the first time, eligible large‑scale industrial consumers will be able to procure electricity bilaterally from any power supplier of their choice through a competitive market mechanism, rather than being limited to purchases from their local distribution companies. The minister highlighted that this competitive framework is expected to benefit not only industrial users but also ordinary consumers by encouraging more efficient generation, better utilisation of existing plants, and lower‑cost, reliable electricity.
## Boost to renewables and storage
The competitive market is also intended to foster greater participation of renewable energy, battery storage and other flexible resources. This should improve the use of indigenous, low‑cost energy sources, enhance system reliability and reduce dependence on expensive imported fuels.
## Forward‑looking statements
The minister thanked NEPRA for providing the regulatory foundation for open access and affirmed the Ministry’s commitment to completing remaining requirements and launching the first CTBCM auction in a transparent and orderly manner. The ultimate goal is a more consumer‑centric, efficient and sustainable electricity system for Pakistan.
## Related coverage
For additional details on NEPRA’s greenlight for bulk consumers, see the linked article on the NEPRA website.