CTBCM, wheeling charges: Power Div asked to consult with industry, stakeholders

ISLAMABAD: The Cabinet Committee on Energy (CCoE) has directed Power Division to discuss Competitive Trading Bilateral Contract Market (CTBCM) and wheeling charges with industry and the relevant stakeholders and present a report to it by February 15, 2024, official sources told Business Recorder. The issue was deliberated at a meeting of CCoE on January 26, 2024.

The forum was informed that the Power Division had been working on market reforms with the aim of transitioning the electricity market model of Pakistan from single Buyer Model to CTBCM. In this regard, Power Division presented CTBCM Model and Roadmap to CCoE in a meeting dated March 27, 2020.

The CCoE demonstrated keen interest in the implementation of electricity market reforms, terming them as amongst the most critical and important activities and decided to directly monitor the CTBCM implementation. Power Division was also directed by CCoE to submit a Monthly Report to the CCoE on the progress achieved towards the implementation of CTBCM.

CCoE all set to consider CTBCM final test run report

In compliance to the direction of CCoE, Power Division prepared the latest monthly reports on the progress of CTBCM for the months of October, November and December, 2023. The first part of progress report highlighted the key updates on CTBCM including CCoE’s approval on the submission of Final Test Run Report to NEPRA and its ratification by the federal cabinet.

The second part focused on the readiness of the power sector for the competitive wholesale electricity market. The last part of the progress report presented the status update on the completion of the actions planned under the CTBCM Test Run phase.

Power Division submitted progress report on the implementation of CTBCM for the months of October, November and December 2023 before CCoE in compliance to its direction.

During the ensuing discussion it was observed that CCoE had constituted a committee to deliberate on the wheeling charges which needed to submit its recommendations to the committee expeditiously and at the same time the Power Division was directed to conduct an internal assessment of the matter by discussing with the industry and the relevant stakeholders and present the same before the committee by February 15, 2024.

It was also noted that National Electricity Act 1910 needed to be updated and modernized vis-à-vis new realities of the sector. The forum directed the power Division to apprise the CCOE about its status in the next meeting. After discussion on monthly reports progress towards implementation of Competitive Trading Bilateral Contracts Market the actual position was presented therein.

The CCoE further directed the Power Division to update the committee already constituted by the CCoE under the chair of Minister for Finance, Revenue and Economic Affairs on the issue of wheeling charges after discussing the matter with the relevant stakeholders and submit the update to the CCoE.

The CCoE also directed the Power Division to update the forum on amending the National Electricity Act 1910 in light of new realities of the sector.

Copyright Business Recorder, 2024