Govt targets 200MW market transaction by June

Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Tuesday said that the first 200 megawatts (MW) electricity transaction under the newly launched Competitive Market Operations Date (CMOD) regime is expected to be completed by June this year, marking a significant milestone in Pakistan's transition towards a competitive power market.

Addressing the CMOD declaration ceremony, the minister said the reform journey, originally envisioned decades ago and initiated in 2016-17 in its practical form, had finally entered the implementation phase after years of deliberations and institutional groundwork.

Reflecting on the delay in implementation despite conceptual approval of competitive market reforms in the early 1990s, the minister termed it a governance lag that cost the country valuable time.

"When you conceptualise something and approve it in 1992 but only begin serious implementation nearly two decades later, it reflects the challenges in our governance framework," he observed.

The minister emphasized that reform was a collaborative institutional effort and appreciated the role of senior officials.

Highlighting ongoing challenges, the minister noted that certain procedural and regulatory matters, including determination of wheeling charges, were still under process. He said a summary had been moved for the Prime Minister's consideration and expressed optimism that following April, auction-related transactions would proceed smoothly.

"We are expecting that by June this year, the first 200MW transaction will be completed. It has taken 20-25 years of discussions and efforts. Achieving this will be a major step forward," he remarked.

Leghari expressed hope that the transition from wholesale to retail electricity market would proceed at a much faster pace than past reforms. He stressed the need to adopt global best practices rather than relying solely on domestic trial-and-error learning.