This is apropos a letter to the Editor titled ‘Provincial concerns on electricity market liberalisation’ carried by the newspaper yesterday. In my view, Balochistan’s objections have focused on the financial burden the proposed charges would place on export-oriented industries.
The province has argued, among other things, that under the Competitive Trading Bilateral Contract Market (CTBCM) framework, open access charges should be limited to Use of System Charges. Adding stranded costs or cross-subsidies would distort competition, raise electricity prices and deter investment in renewable energy and local projects.
In a formal letter, it has rejected inclusion of cross-subsidies and inefficiencies in the open access tariff, warning this would make the CTBCM ineffective and unaffordable for its industrial and export sectors. It has called for allocations based on comprehensive market needs assessments in consultation with provinces, and a structured plan to phase out cross-subsidies from industrial tariffs.
Khyber Pakhtunkhwa has also conveyed its reservations but received the summary only hours before the Cabinet Committee on Energy meeting, chaired by the Prime Minister, that approved wheeling charges at Rs 12.55 per kWh.
The short notice effectively denied the province the opportunity to fully articulate its position before a decision was taken. Only one province, it appears, did not formally register concerns with the proposals.
Noorullah Achakzai (Quetta)
Copyright Business Recorder, 2025
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