Pakistan’s Nepra approves system charges for competitive electricity market
Pakistan’s National Electric Power Regulatory Authority, Nepra, has approved uniform system charges for large electricity consumers that will participate in the competitive electricity trading market. The decision clears the way for the first 400 MW auction for consumers with open access to the grid, Dawn reports.
System charges for participants in the competitive market will range from 6.23 to 19.62 Pakistani rupees per unit of electricity, depending on the consumer category. They will cover electricity transmission and distribution costs, fixed charges for using the grid, and cross-subsidization.
Rates for market participants
For industrial consumers in category B-3, the system charge was set at 6.23 rupees per unit, and for category B-4 at 9.09 rupees. These amounts will be paid in addition to the cost of electricity supply, including generation costs, which will be agreed upon by private suppliers and large consumers.
For consumers in categories C-3 and C-2 with single-point distribution, the charge will range from 14.95 to 19.62 rupees per unit. For consumers in categories A-2 and A-3, it will amount to 19.14 rupees. Pakistan has more than 3,000 large electricity consumers.
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400 MW auction
Large consumers that do not participate in the competitive electricity transmission auction will pay higher transportation charges, ranging from 19.17 to 32.56 rupees per unit depending on the category. A fixed grid charge of 1 rupee per kilowatt per month, calculated on the basis of the agreed load, will also apply to all categories.
The uniform rates apply to all distribution companies, including K-Electric. Independent System Operation, a new entity in the energy sector, is to hold a 400 MW auction in the coming months. The Pakistani government has already allocated 800 MW of generating capacity for sale in two stages.
Under government rules, 800 MW of capacity will be sold through a competitive auction for five years, and after the initial stage, the volume may be increased with government approval. Nepra also set a uniform loss factor: 8.04% for 11 kV networks and 1.51% for consumers connected at the 132 kV level. No upper or lower limit will be set for auction rates, and they will be fixed for one year.
