Pakistan is set to auction 800 megawatts of electric power wheeling rights through competitive bidding for the first time, marking a major step toward opening the national transmission network to private buyers and sellers while curbing monopolies.
The Ministry of Energy (Power Division) has issued draft Framework Guidelines for Wheeling Auctions 2025 for consultation, laying out rules under the Competitive Trading Bilateral Contract Market (CTBCM). The plan will come into effect on the Competitive Market Operation Date (CMOD) set by the National Electric Power Regulatory Authority (Nepra) and will remain valid for five years.
Under the scheme, the Independent System and Market Operator (ISMO) will hold annual auctions without price caps, requiring bid bonds and performance guarantees from participants. To prevent market dominance, ISMO may restrict how much capacity a single bidder can win. Successful bidders will pay their quoted price per kilowatt-hour in addition to grid charges and surcharges for a one-year non-transferable allocation.
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The guidelines include strict enforcement measures such as bond forfeiture, cancellation of awards, and loss of access rights in case of violations. ISMO will release an annual auction calendar, manage a two-stage bidding process, and publish results after Nepra’s approval and notification in the Gazette.
The draft also provides for grievance redressal, dispute resolution timelines, and re-auctioning of unallocated capacity. Industry stakeholders have been invited to review the draft and share feedback before finalization.
