Pakistan will hold its first-ever electricity auction in November 2025 under the newly established Competitive Trading Bilateral Contract Market (CTBCM), marking a major shift toward a multi-buyer, multi-seller power system, according to a news report.Â
The winning suppliers are expected to be announced by January 2026. Under the new market, ISMO—established in 2024—will oversee transparent trading between power producers and buyers.Â
Initially, 800 megawatts (MW) of electricity will be sold to bulk consumers at competitive rates through the November auction.Â
Officials said that while demand under CTBCM already exceeds 4,000MW, only 800MW has been allocated for the pilot phase to avoid increasing the capacity payment burden on the existing regulated system.
At least 15 private entities, including Engro, Fatima, and Shams, have applied to the National Electric Power Regulatory Authority (NEPRA) for power supplier licenses to participate in the auction.
The shift to CTBCM is expected to reduce power costs significantly. Industrial consumers currently pay around Rs30–32 per unit (excluding taxes) under the single-buyer model.Â
In contrast, CTBCM-based solar and renewable producers could offer electricity at roughly Rs15 per unit, factoring in Rs9 per unit in production costs and Rs6–7 per unit in wheeling charges.
Officials said NEPRA will soon finalise wheeling charges, expected to range between Rs6–7 per unit, while the maximum allowed ceiling stands at Rs12.55 per unit.
New entrants will be allowed to generate electricity through solar, wind, run-of-the-river, nuclear, or bagasse-based plants but will not be permitted to use oil, gas, or coal-based technologies. Suppliers who win bids will have up to three years to establish plants, although those with existing capacity can begin transactions immediately.
The reform is expected to enhance competition, lower electricity costs for industries, and accelerate Pakistan’s transition to cleaner, more efficient energy sources.
