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Pakistan Launches First 400MW Wheeling Auction

The government says the auction will let large users buy power directly from generators to cut industrial costs through a regulated competitive platform.

Overview

  • The Power Division and ISMO issued a request for proposals for the first wheeling auction on Sunday, offering 400 megawatts under the CTBCM and setting a proposal deadline of November 20, 2026.
  • Officials said this initial phase targets industrial and other large consumers using more than 1 MW and is the first tranche of an 800MW programme to be rolled out over five years.
  • Regulatory change from Nepra — a uniform Use of System Charge for open‑access bulk consumers — is the immediate enabler that allows eligible users to choose suppliers and use the transmission network.
  • ISMO said the auction will follow a defined five‑step procedure and run on a dedicated digital platform, and it will publish guidance materials and explainer videos to help participants submit bids.
  • The government frames the move as a way to lower industry power costs and boost competitiveness, but energy experts say final savings will depend on wheeling charges and other system costs and ordinary household relief is not immediate.