Overview
- NEPRA, in a decision published Tuesday, declared January 22 as the start of market operations and directed the Independent System and Market Operator (ISMO) to move at once to issue the request for proposals.
- The approved design lets ISMO auction up to 800 megawatts through competitive bids to recover stranded costs created by liberalisation, with the first sale expected in June or July 2026.
- To close gaps in grid data before a full network study due January 2027, ISMO must attach an Interim Congestion Disclosure Note to the RFP and hold pre-bid technical briefings with transmission and distribution companies.
- NEPRA set neutrality and anti-collusion rules by capping any group at 20% of capacity, requiring conflict declarations from the seven auction committee members, ordering release of aggregated bid data and a post-auction summary, and rejecting provincial seats and a separate grievance body.
- Industry groups argued the 800MW cap is too low and the 1MW minimum load could limit access, while ISMO called the cap a starting point and noted wheeling lets large users buy power from generators through the grid for a fee.