National Electric Power Regulatory Authority has approved new electricity wheeling charges for bulk power consumers across Pakistan.
The new use of system charges (UoSC) will apply across all electricity distribution companies, including K-Electric.
NEPRA has set charges ranging from Rs. 6.23 to Rs. 19.62 per unit for consumers entering the competitive electricity market.
The decision will allow open-access consumers to participate in Pakistan’s upcoming 400-megawatt electricity auction.
How the New Wheeling Charges Will Work
Under the new framework, consumers will pay for using the national electricity network.
This network will transport electricity from private suppliers to consumers’ facilities.
The charges include transmission costs, distribution expenses, fixed grid charges and cross-subsidies. B-3 industrial consumers participating in the competitive market will pay Rs. 6.23 per unit.
B-4 consumers will face a higher charge of Rs. 9.09 per unit.
These charges will be separate from the electricity price agreed between private suppliers and buyers. Pakistan currently has more than 3,000 bulk power consumers.
C-2 and C-3 single-point distribution consumers will pay between Rs. 14.95 and Rs. 19.62 per unit.
Meanwhile, A-2 and A-3 general supply consumers will pay Rs. 19.14 per unit.
Higher Charges for Non-Participating Consumers
Consumers staying outside the competitive wheeling auction will face significantly higher transportation costs.
Their charges will range from Rs. 19.17 to Rs. 32.56 per unit. Non-participating B-3 consumers will pay Rs. 19.17 per unit. B-4 consumers will pay Rs. 25.45 per unit.
C-2 and C-3 consumers will face charges of Rs. 31.30 and Rs. 32.56 per unit, respectively.
A-2 and A-3 consumers will pay Rs. 32.08 per unit. NEPRA has also introduced a fixed grid charge of Rs. 1 per kilowatt per month.
It will apply to sanctioned load across all consumer categories.
The fixed charge will apply regardless of whether a consumer participates in the auction.
Pakistan Prepares for 400MW Electricity Auction
The uniform charges are an important part of Pakistan’s planned competitive wholesale electricity market.
In the first phase, the Independent System and Market Operator will auction 400MW of electricity. The government has allocated 800MW for competitive auctions across two phases.
Buyers will purchase electricity through competitive bidding under five-year arrangements. Successful bid rates will remain fixed for one year.
The auction schedule and bidding procedures are expected to be announced separately.
Uniform Electricity Loss Factors Approved
The regulator also approved uniform transmission and distribution loss factors.
The loss factor will be 8.04% for consumers connected at the 11kV level.
For consumers connected at 132kV, the approved loss factor will be 1.51%. The regulator reviewed proposals from the Power Division, K-Electric, market authorities and bulk power consumers.
The review considered cross-subsidies, distribution company differences and electricity network losses.
NEPRA said open-access consumers will face system charges comparable to similar consumers served by suppliers of last resort.
The framework also includes an additional charge to address differences among distribution companies and K-Electric. The federal government has already approved guidelines for the wider 800MW competitive wheeling programme.
Authorities plan to expand the auction volume after the initial phase, subject to required approvals.
In other news read more about: Nepra Approves Uniform Electricity Network Charges in Pakistan
The first 400MW auction will now move forward under the newly approved framework.
