Rules amended: Bulk consumers can procure power from multiple suppliers: NEPRA

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has unveiled key amendments to its Consumer Eligibility Criteria Regulations, 2022, allowing bulk power consumers greater flexibility to procure electricity from multiple suppliers.

Through an SRO issued on Tuesday under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the regulator has revised key provisions to facilitate competitive electricity markets and improve consumer choice.

Under the amended regulations, bulk power consumers will now be permitted to enter into supply arrangements with more than one electric power supplier. However, suppliers will not be obligated to sell electricity to a consumer that has already contracted supply from another provider.

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The new framework enables bulk consumers to divide their energy and capacity requirements between the supplier of last resort and competitive suppliers. The proportion of energy and capacity contracted with each supplier must remain consistent throughout the contract period.

According to the amendments, consumers currently receiving electricity from a supplier of last resort must provide at least one year’s prior written notice if they intend to procure a portion of their requirements from a competitive supplier.

Following such notice, the supplier of last resort will have 15 days to either consent to continue supplying the remaining load or decline the request.

If consent is granted, both parties will amend or execute new agreements reflecting revised supply arrangements.

In cases where consent is not provided, the consumer may either continue full procurement from the supplier of last resort or terminate the arrangement altogether with one year’s notice and switch entirely to a competitive supplier.

The regulator has clarified that electricity procured from competitive suppliers will be governed under the Market Commercial Code, while supply from the supplier of last resort will remain subject to regulated tariffs and conditions applicable to similar categories of bulk consumers.

The amendments also ensure continuity of supply by allowing consumers to revert to the supplier of last resort in case of default or termination by a competitive supplier.

Additionally, any bulk consumer defaulting on payment obligations to any supplier will be subject to disconnection in accordance with applicable laws and regulations.

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