The National Electric Power Regulatory Authority (Nepra) has granted approval to operationalize Pakistan’s long-awaited Competitive Trading Bilateral Contract Market (CTBCM), marking a major milestone toward a competitive electricity market structure in the country.
In its latest determination, Nepra issued the Final Test Run (FTR) report and the Market Commercial Code (MCC), affirming that the Market Operator (MO) has completed most of the preconditions necessary for the commercial launch of CTBCM. The authority said the Market Management System (MMS)—fully developed and tested since June 2022—has been producing settlements without significant issues.
Nepra acknowledged that only two action items remain pending: the enrolment of market participants and service providers and the benchmarking of the MMS with international standards. The regulator has given a three-month extension to complete these requirements. The Distribution Companies (Discos), K-Electric (KE), and National Grid Company (NGC) have been declared as deemed market participants and are required to sign participation and service agreements within the prescribed time frame.
The regulator also directed the Independent System and Market Operator (ISMO) to ensure transparency and public accessibility of all market data, including settlement statements and marginal prices for the past two years, to promote fair competition and informed participation.
Recognizing limited stakeholder awareness of CTBCM mechanisms, Nepra instructed ISMO to initiate a nationwide capacity-building campaign—comprising workshops, seminars, and interactive sessions—within one month of the market’s launch. This campaign will target generators, bulk power consumers (BPCs), competitive suppliers, and industrial chambers, helping them understand market eligibility, pricing, and settlement mechanisms.
The Authority emphasized that the declaration of the Competitive Market Operations Date (CMOD) will occur only after the determination of grid charges and issuance of the stranded cost framework by the Federal Government, in line with the National Electricity Plan (NEP).
Nepra also directed ISMO to submit a progress report on the Supervisory Control and Data Acquisition (SCADA) system by December 2025, noting that while its absence does not impede CTBCM implementation, it is vital for the market’s future evolution and ancillary services.
By approving the CTBCM framework, Nepra has set the stage for Pakistan’s transition from a single-buyer power model to a competitive wholesale market, a reform long sought by policymakers to enhance transparency, efficiency, and investor confidence in the power sector.
