Experts call for disco reforms before full roll out of competitive power market, as SDPI unveils wheeling auction sandbox

September 5, 2026 154news Acacia

Experts Call For Disco Reforms Before Full Roll Out Of Competitive Power Market, As SDPI Unveils Wheeling Auction Sandbox

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 3rd Sep, 2026) The experts among regulators, researchers and industry stakeholders on Thursday called for strengthening the foundational systems of power distribution companies (DISCOS) before expanding the Competitive Trading Bilateral Contracts Market (CTBCM).

These recommendations emerged during the Sustainable Development Policy Institute (SDPI)’s Network for Clean Energy Transition (NCET) launch of its Energy Regulatory Sandbox, focusing on “Impacts of Competitive Auctions on DISCOs: Managing Consequences of Market Liberalization”.

Key Takeaways:

  • Shah Jahan Mirza, former Managing Director of Private Power and Infrastructure Board (PPIB), described CTBCM as a crucial sector topic, currently operating within a limited competitive market.
  • He noted that the quantum being auctioned was not substantial, potentially limiting overall sector impact.
  • Key transition pillars are the privatization of DISCOS and establishment of a competitive market under CTBCM.
  • Mirza commended SDPI's sandbox exercise as valuable.

Citing global trends, he stated:

  • Markets opened to competition generally result in improved electricity pricing, quality, and quantity.

  • The overarching goal should be reducing the overall system cost through wheeling charges and standard cost recovery.

  • The 200MW pilot project will draw from the most expensive generation sources, encouraging a competitive market.

  • Existing solar systems should be better utilized rather than removed, predicting an overall positive impact.

  • Dr Khalid Waleed, Energy Economist and Research Fellow at SDPI, highlighted the rise of solar and Battery Energy Storage System (BESS) adoption as drivers for sector transition.

  • He proposed designating solar and BESS entities as virtual power plants to sell electricity generated during the day through CTBCM.

  • Privatization alone won't benefit consumers unless innovation is central to market liberalization, he cautioned.

Muhammad Ayub, former CEO of [Organization Name], also shared insights during the event.