Energy Ministry issues draft guidelines for competitive bidding, aiming to reduce monopolies and encourage private sector participation in power transmission.
Pakistan is set to auction 800 megawatts (MW) of electric power wheeling rights through competitive bidding for the first time in its history. This move aims to open the country’s transmission network to private buyers and sellers, reducing market monopolies and fostering a more competitive energy market.
As per reports, the Ministry of Energy (Power Division) has issued a draft of the “Framework Guidelines for Wheeling Auctions, 2025,” which introduces an auction-based system under the Competitive Trading Bilateral Contract Market (CTBCM) framework.
The plan will be implemented following the Competitive Market Operation Date (CMOD), as announced by the National Electric Power Regulatory Authority (Nepra), and will remain in effect for five years.
The Independent System and Market Operator (ISMO) will conduct annual auctions with no cap or floor on bids. Participants will need to provide bid bonds and performance guarantees. To prevent market concentration, ISMO may set limits on how much capacity a single participant can secure. Successful bidders will be required to pay their quoted price per kilowatt-hour, along with grid charges and surcharges, for a one-year term. They will also be prohibited from transferring their allocations.
The guidelines include strict compliance measures, such as forfeiting bonds, revoking awards, and terminating open-access rights for violations. ISMO will publish an annual auction calendar and oversee a two-stage evaluation and bidding process. The Auction Committee will rank the bids and publish the results online after Nepra’s approval and notification in the official Gazette.
Additionally, the draft introduces a grievance mechanism and timelines for dispute resolution, along with rules for re-auctioning any unallocated capacity. The government has invited industry stakeholders to provide feedback on the draft before it is finalized.
