The Competition Commission of Pakistan (CCP) convened a high-profile dissemination session at its head office to present the findings and recommendations from its recently published Competition Assessment Study on the Power Sector. The session was spearheaded by CCP Members Mr. Saeed Ahmad Nawaz, Mr. Salman Amin, and Ms. Bushra Naz Malik, aiming to address regulatory bottlenecks and foster a more competitive electricity market.
The event brought together senior officials from key stakeholders, including the Ministry of Energy (Power Division), National Electric Power Regulatory Authority (NEPRA), and various power distribution and regulatory bodies such as LESCO, IESCO, and the Privatization Commission.
The discussion revolved around actionable steps to improve the power sector’s competitiveness. Central to the recommendations was the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) model, which allows power generation and distribution companies to directly negotiate contracts for electricity sales. The CTBCM aims to introduce retail competition, reducing dependency on monopolistic state-run utilities and offering consumers more choices.
Highlighting the importance of corporate governance in addressing inefficiencies often seen in state monopolies, Mr. Saeed Ahmad Nawaz noted that monopolistic practices result in reduced transparency and accountability. Drawing parallels with Pakistan’s telecommunications and banking sectors, he emphasized how increased competition has delivered better consumer choices and efficiency gains, urging the power sector to follow a similar path.
“Decentralization and a competitive framework are critical to attracting foreign investment and ensuring the long-term sustainability of Pakistan’s power sector,” Nawaz said.
Ms. Kishware Khan, Director General of CCP, along with Assistant Director Mr. Samiullah Jan Afridi, provided a detailed presentation on the methodology, key findings, and recommendations of the Competition Assessment Study. They outlined systemic challenges, including regulatory rigidity, market concentration, and barriers to entry, which hinder the sector’s progress.
The study advocates for reforming the regulatory framework, encouraging private sector participation, and fostering competition through transparent pricing and market operations.
Stakeholders actively participated in the discussion, raising pertinent questions and providing constructive feedback. CCP officials addressed these concerns, emphasizing their commitment to ensuring a level playing field for all market participants.
The reforms discussed hold significance not only for improving the power sector’s efficiency but also for reducing electricity costs for consumers, ensuring energy security, and attracting foreign direct investment. CCP’s advocacy aligns with its broader mandate to promote fair competition across sectors, benefiting businesses and consumers alike.
