Pakistan is moving closer to meeting another key demand of the International Fund (IMF) by launching its first-ever deregulated electricity market next month.
The market will commence in March 2026 and initially offer 200 MW of electricity for auction. The deregulated system will cover B3 and B4 industrial consumers, while the capacity charges currently imposed on electricity in this segment will be zero.
Independent market operators have been established to manage electricity trading. Initially, electricity will be sold to large consumers with a minimum demand of 1 MW, with total market supply expected to grow to 800 MW over the next 4 years.
Large consumers will pay only installation charges to electricity companies, while distribution companies (Discos) will receive wiring fees for grid usage. Charges will be set at Rs. 6 per unit for B3 and Rs. 9 per unit for B4 consumers, who will be able to purchase the cheapest electricity available in the market.
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