Govt to let consumers choose their own power supplier from 2026

The federal government is opening up the country’s electricity market, allowing consumers to choose who powers their homes and businesses, a freedom never before available in the nation’s energy history.

Starting January 2026, consumers using one megawatt or more will be able to buy electricity from any power company they prefer, ending decades of regional monopolies that often left customers with no real choice.

The announcement came during a briefing by Power Division Secretary Dr Fakhar Alam Irfan to the National Assembly’s Standing Committee on Power.

He said the government is “already moving towards an open electricity market,” which will promote competition and eventually bring fairer prices for consumers.

Also Read: Rs0.08 per unit increase to hit electricity bills in October

Dr Alam also shed light on one of the power sector’s biggest challenges — the circular debt. While the debt hasn’t grown in the past three years, it still looms large over Pakistan’s energy system.

“In 2024, financial losses in the power sector stood at Rs600 billion. This year, we’ve reduced them to Rs397 billion,” he said, adding that further cuts are in progress.

He clarified that losses exceeding NEPRA’s targets don’t immediately burden consumers but eventually feed into circular debt, which ends up being paid through the federal budget.

Dr Alam also directed that power feeders with up to 20% losses should not be shut down, as such measures harm both consumers and government finances.

Karachi’s K-Electric problem

During the session, committee member Shahida Rehmani voiced concerns over Karachi’s persistent electricity crisis.

“Karachi is a mega city but is served by only one power company — K-Electric,” she said. “There are severe electricity and infrastructure problems, and while announcements are made, implementation is missing.”

Her comments echoed growing frustration among Karachi residents who have long endured power outages and billing issues without the option to switch providers.

Solar power rising

The committee was also briefed on the rapid rise of solar energy across Pakistan. Net-metering capacity has surpassed 6,000 megawatts, while off-grid solar installations have topped 1,200 MW, according to satellite data.

However, officials warned that the growing share of solar power is creating new challenges for the national grid. Electricity supplied through the grid includes around Rs14 in capacity charges and Rs9 in taxes per unit, making it far pricier than solar-generated power.

Despite these pressures, the government says it remains committed to achieving a load-shedding-free Pakistan, with reforms aimed at both stability and affordability.

What it means for consumers

While the 2026 rollout will initially benefit large power users, the plan is to eventually extend the free market access to smaller consumers — including households.

In simple terms, Pakistanis may soon be able to pick and choose electricity providers the same way they select mobile networks — a shift that could redefine how the country powers its future.