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Pakistan to Open Electricity Market to Large Users in January 2026

Lawmakers postponed the enabling bill to February to allow scrutiny of grid risks from fast-growing distributed solar.

Overview

  • Power Division Secretary Dr Fakhr Alam Irfan told a National Assembly panel that consumers using up to 1 megawatt, including in Karachi, will be able to choose their supplier from January 2026 with an initial 200 MW offered for bulk purchase.
  • The National Assembly Standing Committee on Power deferred the Multi-Vendor Electricity Distribution Bill, 2025 to February 2026 for further review.
  • Officials reported 18,000 MW of distributed solar nationwide, comprising 6,000 MW of net-metered and 12,000 MW of off-grid capacity, and warned of grid stability challenges.
  • Grid-supplied electricity carries about Rs14 per unit in capacity charges and Rs9 in taxes, making it costlier than net-metered solar, according to the Power Division.
  • Operational steps include instructing DISCOs not to shut feeders with up to 20% losses, planning private-sector engagement forums in Karachi, and highlighting a reduction in sector losses to Rs397 billion in 2025 from Rs600 billion in 2024.