The National Electric Power Regulatory Authority (Nepra) has issued its determination on the Competitive Trading Bilateral Contract Market (CTBCM) Final Test Run (FTR) and Market Commercial Code, paving the way for the operationalisation of Pakistan’s wholesale electricity trading market, according to a news report published by Business Recorder.
As per the determination, the Market Operator (MO) informed Nepra that all preconditions for the CTBCM launch had been completed. The Market Management System (MMS) has been fully developed and operational since June 2022, processing monthly settlements without major issues. A benchmarking exercise for MMS with international standards is underway and expected to conclude by the end of 2024.
Nepra’s bench, led by Chairman Dr. Kabir Sidhu, reviewed submissions from the Market Operator, System Operator, and other stakeholders, concluding that most action items from the test run had been completed. Two pending tasks — the enrolment of market participants and the benchmarking of MMS — have been granted a three-month extension.
The Authority also accepted the MO’s request to designate distribution companies (Discos), K-Electric (KE), and the National Grid Company (NGC) as deemed market participants and service providers.
The regulator directed that all required agreements be signed within three months, and that a structured capacity-building campaign be launched within one month of the commercial operations date (CMOD). This campaign will include workshops and seminars in major cities to familiarise generators, suppliers, and industrial buyers with market operations, contract types, and pricing mechanisms.
Nepra stressed that transparency is critical for the new market’s success and directed the Independent System and Market Operator (ISMO) to publish all relevant settlement data, marginal prices, and reports for the previous two years upon the declaration of CMOD.
The Authority noted that while most systems are ready, the deployment of the Supervisory Control and Data Acquisition (SCADA) system remains delayed. Nepra ordered ISMO to submit a comprehensive progress report on SCADA implementation by December 2025.
According to the determination, the declaration of CMOD will depend on two milestones — Nepra’s determination of grid charges and the government’s issuance of a stranded cost framework under the National Electricity Plan. Once these are completed, the CTBCM will be formally operational, marking a major step toward competitive electricity trading in Pakistan.
