Mohsin Siddiqui (Chief Reporter)

The Cabinet Committee on Energy (CCoE) has taken a significant step by forming a special panel, led by Caretaker Finance Minister Dr Shamshad Akhtar, to address concerns related to wheeling charges comprehensively. The committee recognizes the importance of resolving the tariff and wheeling issues to avoid potential obstacles in the implementation of the scheme.

The Power Division provided a briefing to the CCoE on November 22, 2023, highlighting that the Economic Coordination Committee (ECC) had approved a plan for the development of a competitive power market in Pakistan on April 30, 2015. A detailed design and plan for the Competitive Trading Bilateral Contracts Market (CTBCM) received approval from NEPRA, subsequently endorsed by CCoE and Cabinet.

The features and plan of CTBCM were also supported by the Council of Common Interests (CCI) under the National Electricity Policy 2021, with the National Electricity Plan 2023 receiving approval on August 9, 2023. To fulfill key requirements before the operationalization of bilateral electricity trading in the country, eligibility criteria rules were approved by the Federal Government on July 26, 2023.

To move forward in alignment with the approved design and plan, CPPA-G was granted a 20-year Market Operator license by NEPRA on May 31, 2022. Alongside the license, NEPRA approved the Market Commercial Code (MCC) and a Test-Run Plan comprising twenty-four action items assigned to different power sector entities. The purpose of the test run was to simulate multi-buyer transactions as laid out in the MCC under actual conditions, without imposing any financial obligations, with the aim of recommending improvements.