CCP explores strategies to boost competition in power sector

KARACHI: The Competition Commission of Pakistan (CCP) hosted a dissemination session at its head office to share insights from its recently published ‘Competition Assessment Study on the Power Sector’. The session focused on presenting key findings and actionable recommendations to enhance competition within the sector.

The event was led by CCP members Saeed Ahmad Nawaz, Salman Amin and Bushra Naz Malik. Discussions centred on the study’s insights into the regulatory framework, market structure and existing barriers to competition, while exploring strategic steps to foster a competitive environment.

Among the key recommendations was the adoption of the Competitive Trading Bilateral Contract Market (CTBCM) model. This initiative allows power generation and distribution companies to establish direct contracts for electricity sales, laying the groundwork for retail competition in Pakistan’s electricity market.

Senior officials from several organisations attended the session, including representatives from the Ministry of Energy (Power Division), National Electric Power Regulatory Authority (Nepra), Privatization Commission, Pakistan Nuclear Regulatory Authority (PNRA), provincial energy bodies, and major electricity distribution companies such as Lesco, Iesco and Fesco.

Nawaz highlighted the inefficiencies associated with state monopolies, which often result in a lack of transparency and accountability. He underscored the importance of corporate governance in addressing these inefficiencies and drew parallels with Pakistan’s telecommunications and banking sectors, where competition has empowered consumers and reduced government control. He stressed that decentralisation is crucial for driving efficiency and attracting foreign investment in the power sector.

The session featured an in-depth presentation on the Competition Assessment Study, delivered by CCP officials -- Director General Kishware Khan and Assistant Director Samiullah Jan Afridi. The presentation detailed the study’s methodology, key findings and practical recommendations.

The session concluded with an interactive discussion, where stakeholders raised questions and shared valuable comments, all of which were addressed by CCP officials.