Power Division notifies framework for 800 MW electricity wheeling

ISLAMABAD: The Power Division has issued a notification allowing the wheeling of up to 800 megawatts (MW) of electricity to facilitate open access and ensure transparent allocation of aggregate wheeling quantum under the evolving competitive power market framework.
According to the notification—SRO 92(I)/2026, issued on January 22, 2026—the federal government has notified the “Framework Guidelines for Wheeling Auctions, 2025.” These guidelines will come into effect on the Competitive Market Operation Date (CMOD) as announced by the National Electric Power Regulatory Authority (NEPRA) and will remain valid for a period of five years or until amended, modified, or superseded by the federal government, whichever occurs earlier.
Under the guidelines, the Aggregate Wheeling Quantum refers to the 800 MW demand to be auctioned for open access and wheeling, which may be revised from time to time by the federal government. The Annual Auction Quantum will be the portion of the aggregate quantum made available for allocation through auctions in a given year.
The aggregate wheeling quantum will be allocated through multiple auctions administered by the Independent System and Market Operator of Pakistan (ISMO) over the five-year period.
For this purpose, ISMO will issue an Auction Process, subject to NEPRA’s approval, detailing the auction calendar, step-wise auction procedures, mode and manner of bid submission, evaluation criteria, grievance redressal mechanism, issuance of letters of award, allocation methodology in case of over- or under-subscription, and requirements for bid bonds and performance guarantees.
There will be no predetermined upper or lower limit on the bid value. The bid value, quoted in rupees per kilowatt-hour (Rs/kWh), will be payable over and above the grid charge and applicable surcharges and will remain fixed for a payment period of one year. Successful auction participants will also be required to pay grid charges and surcharges, if any, during and after the payment period.
To qualify for participation, auction participants must be companies registered with the Securities and Exchange Commission of Pakistan (SECP) and either be eligible for a competitive electric power supplier licence under the relevant laws and regulations or qualify as an open access user under applicable documents. Participants are also required to submit undertakings confirming compliance with market rules, capacity obligations, and other regulatory requirements, along with detailed timelines for initiating the wheeling transaction.
ISMO will be responsible for administering the auctions and providing all necessary administrative and technological support. It will submit the auction process to NEPRA within seven days of notification of the guidelines, while NEPRA will review and approve the process within 30 days. Auction results will be submitted to NEPRA for approval, following which ISMO will issue letters of award and notify the results in the official Gazette.
The quantum awarded to a successful auction participant will remain fixed for the period specified in its bid. Successful participants will be solely responsible for arranging interconnection of generation and load facilities with the relevant transmission or distribution network in accordance with applicable laws and codes. ISMO will bear no responsibility for delays in interconnection.
To prevent market concentration and discourage monopolistic or oligopolistic practices, ISMO may impose limits on per-party allocation of the aggregate wheeling quantum.
In the event of any inconsistency between these guidelines and the NEPRA Act, National Electricity Policy, National Electricity Plan 2023–27, or the Competitive Trading Bilateral Contract Market (CTBCM) framework, the latter shall prevail. Non-compliance with the guidelines or auction process may result in cancellation of the letter of award, revocation of open access rights, termination of contractual arrangements, or other enforcement actions after affording the concerned party an opportunity of hearing.
The guidelines clarify that they do not create an automatic right to open access and remain subject to NEPRA’s approval of auction results, notification in the official Gazette, execution of contractual documents, and compliance with all applicable regulations.
Existing wheeling arrangements operationalised prior to issuance of these guidelines will continue to be governed under existing laws and regulations, including the NEPRA Open Access (Interconnection and Wheeling of Electric Power) Regulations, 2022, and will only be liable to pay grid charges and applicable surcharges.
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