Understanding Pakistan's Competitive Trading Bilateral Contract Market (CTBCM)

Summary

This guide, prepared by Alternate Development Services (ADS) in July 2026, explains Pakistan's Competitive Trading Bilateral Contract Market (CTBCM), the electricity market reform that replaces the single-buyer model with direct bilateral contracts between bulk power consumers (1 MW and above) and competitive generators/suppliers, administered by the Independent System and Market Operator (ISMO) and regulated by NEPRA under SRO 92/(I)/2026. It walks industrial stakeholders, particularly textile, apparel and sports-goods exporters, through the auction process, registration requirements, wheeling mechanics, and renewable energy procurement pathways, drawing on the Framework Guidelines for Wheeling Auctions 2025 and ISMO's published Draft RFP for the first 200 MW wheeling auction.

Key Points

• 1CTBCM replaces Pakistan's government-managed single-buyer electricity system with a regulated competitive market where bulk power consumers (1 MW+ demand) contract directly with generators and suppliers.
• 2The first wheeling-capacity auction allocation (800 MW) is expected under a framework approved in December 2025, with NEPRA finalizing wheeling charges.
• 3Winning an auction allocation does not itself guarantee cheaper electricity. Total cost is the negotiated bid value plus grid charges (5 components) plus government surcharges.
• 4Industrial firms are advised to begin internal readiness assessments now, covering eligibility, compliant metering, and legal/commercial advisory support.
• 5CTBCM also opens renewable energy procurement pathways, including captive solar and corporate power purchase agreements (PPAs), relevant to firms with decarbonization commitments.