Pakistan’s First 200MW Competitive Power Deal Set for June 2026 under New CMOD Regime. -

In a significant move toward energy sector deregulation, Federal Power Minister Sardar Awais Ahmed Khan Leghari announced that Pakistan plans to finalize its first 200MW electricity transaction through a competitive wheeling auction by June 2026. This initiative marks the launch of the Competitive Market Operations Date (CMOD) regime, a milestone in the country’s multi-decade transition toward a competitive power market.

Key Highlights of the New Power Regime

Direct Purchasing: Under the wheeling framework, large industrial and commercial consumers can bypass the traditional single-buyer model to enter into direct agreements with power plants for their electricity supply.
Independent Management: The auction process will be managed by the newly incorporated Independent System and Market Operator (ISMO) to ensure transparency and fair competition among market players.
Phased Rollout: While the initial phase focuses on 200MW, the government has approved an annual auction framework to trade a total of 800MW via wheeling over the next five years, starting with the full 800MW target for the current year.
Network Usage Charges: Consumers participating in this regime will only pay a network usage fee (wheeling charges) to government-owned transmission and distribution companies for using the grid infrastructure.
Market Modernization: The CMOD regime aims to improve sector efficiency and cost optimization by shifting from a centralized purchasing model to a more open, market-driven structure.

Future Outlook

The Power Minister expressed optimism that after April 2026, auction-related transactions will gain momentum once regulatory matters, such as the final determination of wheeling charges, are settled. This transition is expected to foster a competitive environment that could eventually lead to better service and more competitive pricing for large-scale consumers.

Disclaimer: This content is for informational purposes only and is based on official reports regarding the government’s power sector reforms. Final auction results and implementation timelines are subject to regulatory approvals and market conditions. Please note that the background image is AI-generated and used for reference purposes.