Experts Seek Transparency, Predictability In New Power Tariff Framework
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 15th Sep, 2026) Energy experts, industry representatives and regulatory specialists on Tuesday called for greater clarity, predictability and non-discriminatory treatment of consumers under Pakistan's newly finalized Use of System Charges (UoSC) framework, at a seminar jointly organized here by the Sustainable Development Policy Institute (SDPI) and the Pakistan Renewable Energy Coalition (PREC).
The session, titled "Powering Change: UoSC Finalisation and the Dawn of CTBCM in Pakistan," examined the regulatory and commercial implications of the Use of System Charges recently determined by the National Electric Power Regulatory Authority (NEPRA), which underpin Pakistan's Competitive Trading Bilateral Contract Market (CTBCM). This reform is intended to allow eligible consumers to purchase electricity directly from competitive suppliers rather than exclusively through their local distribution company.
Key Points:
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Transparency and Predictability: Experts emphasized the need for greater clarity and predictability in the new tariff framework.
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Network Infrastructure Charges: Muhammad Ayub, former Managing Director of the National Transmission and Despatch Company (NTDC), suggested that UoSC components related to network infrastructure should be based on multi-year loss calibration studies, considering changing line losses and equipment performance over time. He recommended a 10-year assessment for new transmission lines before finalizing associated charges.
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Billing Mechanisms: Ayub also raised questions about how supply disruptions and network faults would be reflected in billing mechanisms.
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Capacity Reserve: He expressed concerns regarding the capacity distribution companies' need to reserve sufficient resources to guarantee reliable supply to bilateral consumers.
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Provincial Regulatory Authorities: Ayub cautioned that the recent establishment of separate provincial electricity regulatory authorities in Sindh, Khyber Pakhtunkhwa, and Punjab could complicate the implementation of a nationally coordinated competitive trading market.
Seminar Objectives:
Engineer Ubaid-ur-Rehman Zia, Head of Energy Unit at SDPI, opened the session by highlighting the discussion's focus on gaps emerging from power market liberalization reforms, particularly the tariff structure for consumers utilizing transmission and distribution networks.
Muhammad Usman Bin Ahmad, Energy Transition Officer at Alternate Development Services (ADS), provided a detailed technical analysis of UoSC components, including:
- Transmission and distribution charges
- Transmission and distribution loss reflections
- Cost adjudication
- Standard cost component
- Debt service surcharge
Ramsha Panwhar of PREC emphasized the importance of a comprehensive understanding of the UoSC determination process.