Pakistan is preparing to introduce a new electricity trading system that will allow consumers and power producers to deal directly with each other, Energy Minister Awais Leghari has said.
Under the proposed market-based system, the government will no longer require consumers to purchase electricity at rates determined through the existing arrangement. Instead, eligible businesses will have greater flexibility to select their preferred power producers and negotiate purchases competitively.
The initial phase will target large electricity consumers, particularly industrial units using more than 1 megawatt of power. These businesses will be able to participate in the new trading mechanism and choose electricity suppliers based on competitive offers.
The government also plans to auction a total of 800 megawatts of electricity over the next five years as part of the transition. According to the plan, the first phase will involve the auction of 400 megawatts.
The proposed changes are aimed at creating greater competition within Pakistan’s electricity market and providing large consumers with more options when purchasing power.
The new trading structure is also expected to bring more transparency to electricity transactions by allowing buyers and producers to interact through a competitive market rather than relying entirely on the existing government-controlled purchasing model.
The initiative represents a shift toward a more open electricity market, with the government seeking to gradually expand direct participation by consumers and power producers.
