Govt pushes uniform grid charges for Discos and K-Electric ahead of power market launch

NEPRA-KE

ISLAMABAD: The federal government has formally urged the National Electric Power Regulatory Authority (Nepra) to implement uniform grid charges across all power distribution companies, including K-Electric, as part of preparations for the launch of Pakistan’s competitive electricity market.

In an instant motion submitted to Nepra, the government called for the consistent application of determined use-of-system (grid) charges on all bulk power consumers and open-access users across Discos, arguing that standardised tariffs are essential for the rollout of the Competitive Trading Bilateral Contract Market (CTBCM), scheduled for June 2026.

The regulator has set a public hearing on the proposal for June 11, 2026.

The proposal would extend Nepra’s December 18, 2025 grid charge determination—currently applicable to 11 state-owned Discos—to K-Electric as well. To address potential revenue gaps arising from uniform wheeling charges, the government has also proposed an additional charge on all wheeling consumers, which would be adjusted in future tariff determinations.

“The operationalisation of market liberalisation reforms cannot be delayed,” the government’s motion stated, adding that any resulting financial gap would need to be covered through a regulator-imposed surcharge.

The government has further proposed amendments to Strategic Directive 88 of the National Electricity Plan to create a framework for managing inter-Disco tariff differentials. The changes are currently pending approval from the Economic Coordination Committee, while stakeholders have been invited to submit written comments.

Story by Israr Khan

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