Move towards electricity market
Imagine an electricity market where price is determined by market forces of demand and supply. Even though this shift has long been on the cards for the Pakistan power sector, there has only been some sign of working towards that aim in the past year or so.
The government filed an application to register the Central Power Purchasing Agency (CPPA-G) as a “market operator” by the Nepra last year in July and a public hearing was held last week to take stakeholder input.
Upon becoming a market operator, the CPPA-G will be the focal point for trading of electricity at prevailing market prices across the entire power value chain. In most developed countries electricity markets operate similar to a stock exchange.
Published in Business Recorder, 12th March, 2018