200MW trade under CTBCM model: Summary sent to PM for approval: Awais

ISLAMABAD: Minister for Power Sardar Awais Ahmad Khan Leghari on Tuesday said a summary has been sent to the Prime Minister for final approval to launch 200 MW electricity trading under the Competitive Trading Bilateral Contract Market (CTBCM) model.

Addressing a ceremony marking the formal Commercial Market Operation Date (CMOD), the minister stated that most issues related to electricity wheeling charges have been resolved, though some matters are still pending with National Electric Power Regulatory Authority (Nepra).

He noted that Nepra officials should have been invited to the event, as they have also received training at a private institute regarding the new market mechanism.

The Minister observed that work on the bilateral electricity trading market began in 2017–18 and was initially expected to be completed by 2019, but faced delays similar to other government initiatives.

READ MORE: Nepra gives the go-ahead to effect CTBCM

He announced that the auction process for 200 MW of electricity will commence in April 2026 and is expected to conclude by June 2026.

NEPRA has directed the Power Division to fix a uniform wheeling rate for electricity. The government has approved wheeling charges of less than Rs9 per kWh, payable to transmission and distribution companies.

According to the proposed plan, the annual auction quantum for the first and subsequent wheeling auctions over the next five years — totaling 800 MW — will be allocated as follows: (i) First auction (2026): 200 MW;(ii) First annual auction (2027): 150 MW; (iii) Second annual auction (2028): 150 MW;

(iv) Third annual auction (2029): 150 MW; and (v) Fourth annual auction (2030): 150 MW.

Sources explained that the approved quantum for the first auction is considered sufficient to meet the demand of participants who have submitted competitive supplier applications to Nepra. The figure was finalized after multiple meetings with the Power Division and stakeholder consultations.

The remaining 600 MW will be distributed equally over subsequent years. However, this represents the minimum quantum to be auctioned annually. Under Clause 2.8 of the auction process, the Independent System and Market Operator (ISMO) may request the Power Division to enhance the quantum based on market demand.

Chief Executive Officer/Additional Secretary Syed Imtiaz Hussain Shah shared details of ISMO journey and issues related to bilateral electricity trading market.

In a separate meeting, Minister for Power Sardar Awais Ahmad Khan Leghari received Atadjan Movlamov, Ambassador of Turkmenistan to Pakistan, at the Ministry of Energy (Power Division).

The Minister warmly welcomed the Ambassador and extended greetings on the occasion of Ramadan, wishing peace and prosperity for the people of both countries.

Ambassador Movlamov highlighted the deep historical and cultural ties between Pakistan and Turkmenistan, stating that these shared bonds provide a strong foundation for enhanced bilateral cooperation.

The meeting focused on strengthening regional connectivity between Pakistan and Central Asian countries. Both sides discussed the strategic importance of robust energy infrastructure and cross-border projects in promoting economic integration, energy security, data exchange, and sustainable development across the region.

The two sides reaffirmed their commitment to advancing energy cooperation and promoting greater regional integration for the mutual benefit of Pakistan, Turkmenistan, and the broader region.

Copyright Business Recorder, 2026