National Electric Power Regulatory Authority (NEPRA) has approved a new system of electricity wheeling auctions allowing consumers to purchase power directly from producers. The decision marks a major shift in Pakistan’s energy sector aimed at improving efficiency and increasing competition.

Under the new framework, buyers will be able to secure electricity directly from power plants instead of relying solely on traditional distribution companies. However they must purchase a minimum of one megawatt of electricity and pay wheeling or grid charges for using the national transmission network.

The system is primarily designed for industrial and large-scale consumers who require bulk electricity. Officials believe this will help industries better manage energy costs while ensuring a more reliable supply.

NEPRA has outlined a long-term plan to offer 800 megawatts of electricity through auctions over the next five years with 200 megawatts to be released in the first phase. The Independent System and Market Operator (ISMO) has been directed to begin collecting bids under a competitive model.

Authorities say the initiative will enhance transparency attract investment and modernize Pakistan’s power market.