ISLAMABAD: Pakistan will auction 800 megawatts of electric power wheeling rights through competitive bidding for the first time in the country’s history, a landmark move to open its transmission network to private buyers and sellers and reduce market monopolies.
The Ministry of Energy (Power Division) issued a draft Framework Guidelines for Wheeling Auctions, 2025 for consultation, outlining an auction-based allocation system under the Competitive Trading Bilateral Contract Market (CTBCM) framework.
The plan will take effect on the Competitive Market Operation Date (CMOD) announced by the National Electric Power Regulatory Authority (Nepra) and remain in force for five years.
Under the plan, the Independent System and Market Operator (ISMO) will run annual auctions, with no cap or floor on bids, and require participants to furnish bid bonds and performance guarantees. To avoid market concentration, ISMO may set limits on how much capacity any single participant can secure. Successful bidders will pay their quoted price per kilowatt-hour on top of grid charges and surcharges for a one-year term. They will not be allowed to transfer their allocations.
The guidelines outline strict compliance measures, including bond forfeiture, revocation of awards, and termination of open-access rights for violations. ISMO will publish an annual auction calendar, invite proposals, and oversee a two-stage evaluation and bidding process.
The Auction Committee will rank bids in descending order, and results will be published online after Nepra’s approval and notification in the official Gazette. Winners will be barred from transferring or selling their allocations.
The draft also introduces a grievance mechanism, timelines for dispute resolution, and rules for re-auctioning unallocated capacity. The government has invited industry stakeholders to review and comment on the guidelines before they are finalized.