Power Division seeks NEPRA approval for uniform grid charges on wheeling consumers

The Power Division has moved the National Electric Power Regulatory Authority (NEPRA) for approval to impose additional charges on wheeling consumers under a uniform grid charges mechanism to be applied nationwide as Use of System Charges (UoSC), including in K-Electric’s service territory, Business Recorder reported. 

NEPRA has scheduled a public hearing on June 11, 2026, to consider the federal government’s motion and proposed policy guidelines for standardising the UoSC regime across the country.

According to the regulator, the motion follows NEPRA’s earlier determinations issued on December 18, 2025, regarding UoSC for ex-WAPDA distribution companies (DISCOs).

The federal government now wants to extend a uniform grid charges framework to all bulk power consumers (BPCs) and open access users, including K-Electric, in line with the National Electricity Policy, National Electricity Plan and Electric Power Supplier Licences Rules, 2023.

Under the proposal, additional charges will be imposed to recover costs incurred by DISCOs and power suppliers.

These costs may be included as prior year adjustments (PYA) in future tariff determinations to address financial gaps arising from uniform wheeling charges.

The proposed UoSC rates include Rs6.69 per unit for B-4, Rs18.29 per unit for C-3, Rs8.51 per unit for B-3, Rs12.63 per unit for C-2(a), Rs18.20 per unit for C-2(b), Rs25.01 per unit for A-2(c), Rs15.22 per unit for A-3 and Rs5.30 per unit for D-1(b).

The Power Division has also proposed amendments to Section 88 (SD-88), subject to approval by the Economic Coordination Committee (ECC), to create a framework for dealing with inter-DISCO differentials resulting from uniform open access charges.

The proposed amendment was included in an ECC summary but was not made part of the final decision. The Power Division has therefore sought rectification of the ECC’s May 5, 2026, decision.

According to the division, the amendment is needed to provide the policy basis for implementing uniform UoSC across all distribution territories.

The Power Division is expected to submit approval of the modification to NEPRA before the regulator issues its final determination.

The division said early determination of uniform UoSC and system losses was required because the Commercial Market Operations Date (CMOD) was declared on January 22, 2026, while the first market auction is scheduled for June 2026.

It said market liberalisation reforms under the Competitive Trading Bilateral Contract Market (CTBCM) could not be delayed and must proceed in line with the approved Market Commercial Code.

The federal government has also decided that UoSC determined for 11 DISCOs should be extended to K-Electric.

The Power Division said any financial gap created by uniform wheeling charges should be recovered through regulator-approved additional charges rather than subsidies.

It said this would ensure a level playing field in market transactions.

The division has requested NEPRA to approve the proposed additional charges as legitimate costs of DISCOs and electric suppliers.

The charges would be recoverable through periodic tariff adjustments and applied uniformly to all wheeling consumers.