Pakistan is set to finalise its first 200MW electricity deal through a competitive wheeling auction by June, according to Sardar Awais Ahmed Khan Leghari. The move is part of the government’s plan to introduce a more efficient and competitive electricity market for large consumers.
The auction will operate under the newly launched Competitive Market Operations Date (CMOD) regime. It will be managed by an independent market operator, ensuring transparency and fair participation. In the first phase, electricity buyers for up to 200MW will be selected. The government aims to expand this system to 800MW later this year.
Under this new arrangement, large industrial and commercial consumers will be able to purchase electricity directly from power plants. They will only pay network usage fees to grid companies, reducing costs and giving them more control over energy procurement. The system is expected to improve efficiency, encourage competition, and support industrial growth.
Experts say wheeling auctions can help reduce electricity prices for large consumers while ensuring a reliable supply. The system also aligns with broader reforms aimed at modernising Pakistan’s energy sector and attracting investment in power generation.
This initiative is seen as a major step toward market liberalisation and improving energy access for high demand users. By June, the completion of the first 200MW auction will provide a benchmark for future phases and could pave the way for a more flexible and competitive electricity market across the country.
