NEPRA allows bulk consumers to buy power from multiple suppliers

The National Electric Power Regulatory Authority (NEPRA) has amended its Consumer Eligibility Criteria Regulations, 2022, allowing bulk power consumers to procure electricity from more than one supplier, Business Recorder reported. 

The changes were notified through an SRO issued under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, aimed at facilitating a competitive electricity market and expanding consumer choice.

Under the revised framework, bulk consumers can divide their energy and capacity requirements between competitive suppliers and the supplier of last resort. The share of supply from each source must remain consistent throughout the contract period.

Suppliers, however, are not obligated to provide electricity to a consumer already contracted with another provider.

Consumers currently relying on the supplier of last resort will be required to give at least one year’s prior written notice before shifting part of their demand to a competitive supplier.

Following such notice, the supplier of last resort will have 15 days to either agree to continue supplying the remaining load or decline the request. If consent is granted, existing agreements will be revised to reflect the new arrangement.

If consent is not provided, consumers may either continue full procurement from the supplier of last resort or terminate the agreement entirely with one year’s notice and switch to a competitive supplier.

Electricity procured from competitive suppliers will be governed by the Market Commercial Code, while supply from the supplier of last resort will remain subject to regulated tariffs.

The amendments also allow consumers to revert to the supplier of last resort in case of default or termination by a competitive supplier.

NEPRA said that consumers failing to meet payment obligations to any supplier will face disconnection under applicable laws.